Miliband will say that Britain needs a recovery for working people if the government is to 'squeeze the deficit and not the middle'.
Miliband will say that Britain needs a recovery for working people if the government is to ‘squeeze the deficit and not the middle’
The failure by the Conservative-led coalition to tackle the cost-of-living crisis has cost the country £116.5 billion, leading to higher borrowing and broken promises on the deficit, Ed Miliband will say tomorrow (Monday).
The figure, equivalent to £4,000 for every British taxpayer, is based on new research from the House of Commons library and published by Labour.
The research shows that, because of the government’s failure to tackle the structural problems behind the cost of living crisis, income tax receipts have fallen short of forecasts by £66 billion, National Insurance contributions are £25.5 billion lower than expected and spending on social security is £25 billion higher than planned.
As well as highlighting this, at an event in Nottingham on Monday Ed Miliband is expected to say that for millions of families this is a ‘ joy-less and pay-less recovery’:
“For a very long time, our country has worked well for a few people, but not for everyday people.
“We live in a country where opportunities are too skewed to those at the top, where too many people work hard for little reward, where too many young people can’t find a job or apprenticeship worthy of their talents, and where families can’t afford to buy a home of their own.
“For all the government’s boasts about a belated economic recovery, there are millions of families still caught in the most prolonged cost-of-living crisis for a century. For them this is a joy-less and pay-less recovery.”
In highlighting the consequences of the government’s failure to tackle low pay, stagnant salaries and soaring housing costs, Miliband will say that Britain’s public finances have been weakened by coalition policies. He will also talk about how addressing the so-called ‘cost of living crisis’ and paying down the deficit are not mutually exclusive:
“Building a recovery that works for everyday people is the real test of the Autumn Statement.
“But that isn’t a different priority to tackling the deficit. Building a recovery that works for most people is an essential part of balancing the books.
“The government’s failure to build a recovery that works for every-day people and tackle the cost-of-living crisis isn’t just bad for every person affected, it also hampers our ability to pay down the deficit.
“Britain’s public finances have been weakened by a Tory-led government overseeing stagnant wages which keep tax revenues low.
“Britain’s public finances have been weakened by Tory policies which focus on low paid, low skilled, insecure jobs – often part-time or temporary – because they do not raise as much revenue as the high skill, high wage opportunities we need to be creating.
“And our public finances have been weakened by higher social security bills to subsidise low paid jobs and the chronic shortage of homes.”
In making the speech, Miliband will draw on new research commissioned by Labour from the House of Commons library, which shows that the total shortfall in income tax receipts over the Parliament between what was forecast in November 2010 and the latest forecast and outturns is over £66 billion, taking policy changes since then into account (click the graph to zoom).
The OBR has attributed a shortfall in income tax receipts since 2010 to “lower wages and salaries” as well as “lower self-employment income and the effect of income shifting related to the reduction of the additional rate of income tax to 45p”.
Labour will also highlight the fact that receipts from National Insurance Contributions are expected to be £25.5 billion lower than forecast in 2010.
Despite the supposed ‘get tough’ approach of the government when it comes to welfare, the number of people needing to claim housing benefit has risen by over 400,000 between May 2010 and May 2014, with the growth of low-paid jobs resulting in more money being paid out in social security to people in work.
As a result of all of this, the Tory-led government is now on course to borrow around £190 billion more than planned in 2010. It has also now borrowed more in four-and-a-half years than the last Labour government did in 13 years. As Miliband will say:
“The result has been David Cameron and George Osborne missing every single target they set themselves on clearing the deficit and balancing the books by the end of this parliament.
“Their broken promises, their abject failure, are not an accident. They are the direct result of an outdated ideology which says all a government has to do is look after a privileged few at the top and everyone else will follow.
“That is why this government has done a great job of squeezing the middle, but a bad job of squeezing the deficit.
“The test this week for David Cameron and George Osborne is whether they recognise that Britain will only succeed and prosper for the long term by tackling the cost-of-living crisis and building a recovery which works for the many, not just for a few.
“Or whether they will just offer more of the same old ideas that have failed them, failed everyday working people, and failed Britain over the past four years.”
James Bloodworth is the editor of Left Foot Forward. Follow him on Twitter
29 Responses to “Ed Miliband: coalition is squeezing the middle not the deficit”
Leon Wolfeson
Why should the Coalition’s entirely unnecessary depression be given a pass?
Sick and tired of it all
Point well and truly missed.
Leon Wolfeson
You want it to be missed, sure.
littleoddsandpieces
There is no pain, only ever greater starvation, reduced wellbeing and even death, because that is what austerity causes, with or without a recession.
It cannot be coincidence that nearly a million benefit sanctions have meant nearly a million food bank referrals, equally to a person at 60 with health issues or a young mother with a new baby.
Labour will not repeal Pension Bills 2010-2014 (latter brought in flat rate pension) that will leave a great many women born from 1953 and men born from 1951 with
NIL STATE PENSION FOR LIFE
that is for them sole money in old age
with three quarters of the rest on even less state pension than present lowest level
of all rich nations bar poor Mexico.
https://you.38degrees.org.uk/petitions/state-pension-at-60-now
This will leave huge numbers on ever vanishing benefit for life.
Labour’s Mr Balls has said Labour would continue Tory spending cuts and
be even harder on welfare reform than the Tories.
The Tories’ welfare reform threatens people’s lives in amongst the 20 per cent poorest income.
These poorest are at least 13 to 15 million, which is a number that by voting would bring in an entirely new political party to government. 15 million did not vote, of all ages, in 2010, which is double all those who voted for all parties put together.
Labour need to do a massive u-turn of ending belief in austerity, tax, pension and welfare reform, that is adding to national debt, not solving it. We see austerity has not solved one nation’s economic woes anywhere in the world.
The Greens offer the life saving new and unique policies in UK history, by ending all benefits admin (housing benefit a work in progress) and offering a end to the 70 per cent rise in starvation since 2010:
– universal, automatic Citizen Income, non-withdrawable
to the level of the basic tax allowance
– Full State Pension to all citizens, irregardless of their National Insurance contribution / credit history caused more by benefit law changes and omissions
which are massively reducing or losing altogether citizens any state pension that is their sole food and fuel money now (7 years lost state pension payout then none).
https://you.38degrees.org.uk/petitions/state-pension-at-60-now
madasafish
You clearly have no Caps Lock.
Stop shouting.