Bristol East Labour MP Kerry McCarthy has slammed the Coalition Government for “wrecking Britain’s economic recovery” and dubbed the Government’s economic plan as “a reckless gamble that has failed”.
Reacting to the Autumn Statement, she said: “George Osborne has disclosed to Parliament that his reckless economic plan has backfired, resulting in economic failure, higher unemployment and a bigger benefits bill.
“Despite the pain of £40bn more spending cuts and tax raises the Chancellor boasted about last year, the recovery he choked off and the higher unemployment he created means the Government will now have borrow billions for failure.
“The Government will have to borrow to pay for higher unemployment and a bigger benefits bill, which doesn't make economic sense” she said.
“The Chancellor is now trying to appease the Right of the Tory party by cutting employees’ rights, freezing public sector pay, cutting foreign aid and lifting restrictions on polluting industries – not to mention rising the retirement age.
“It is astonishing that he thinks these measures will get the economy growing again. These measures are direct attack on ordinary people and will not help stimulate our economic recovery.”
She said by the Government had chocked off Britain’s economic recovery by cutting too deeply and too quickly, leaving ordinary people to pay the price.
“Long-term youth unemployment in my constituency has increased by 177% and there are now 11.6 jobseekers for every vacancy. This is the human cost of the Government’s economic failure. Unemployment is at the highest level for 17 years and it is set to rise further. All of this means that the Government will not be able to reduce the deficit has it had planned.”
She welcomed the investment in Bristol’s rapid transport link and the South Bristol link road, but added: “The Government’s half-hearted infrastructure plan will do little to address the fundamental problems in our economy.”
Bristol West Lib-Dem MP Stephen Williams received an assurance from the Chancellor – made during the debate that followed the Autumn Statement – that the income tax threshold will continue to rise next year, in spite of tougher than expected fiscal circumstances.
This was a key Lib-Dem policy at the General Election and means that lower-paid workers will pay less tax and the least well off will be taken out of tax altogether.
Mr Williams also welcomed the rise in pensions and unemployment benefits next year in order to stop the high rate of inflation from squeezing the incomes of the poorest. “This comes on top of last week’s announcement by Deputy Prime Minister Nick Clegg that a £1bn fund is to be set up to help combat rising youth unemployment,” he said.
“Taken together, these commitments demonstrate that the Coalition is serious about protecting the least well off through these tough times.”
He too welcomed the extra funding for transport in Bristol.
“The new city centre rapid transit route will see faster and more frequent buses, helping to reduce travel times and encourage more people out of their cars. This in turn will help to reduce both congestion and carbon emissions.
“Together with the Great Western Rail electrification announced earlier this year, this will help to give Bristol a public transport system of which we can be proud.”
