Coalition’s Budget will throw people out of work and hold back economic growth - Harman

Harriet Harman MP, Acting Leader of the Labour Party, has criticised the coalition’s Budget statement as one that will throw people out of work, hold back economic growth and harm vital public services.

It is a Budget of broken Tory and Lib Dem promises on VAT.

She emphasised that there was an alternative. Last week the independent Office for Budget Responsibility reported that Labour’s plans would have more than halved the deficit over four years.

Harriet Harman said:

"This is a Tory Budget that will throw people out of work, that will hold back economic growth, that will harm vital public services. “Yes, it’s the Chancellor’s first Budget but it’s the same old Tories hitting hardest at those who can least afford it and breaking promises.

"This is true to form for the Tories, but it includes things that the Liberal Democrats have always fought against.

"Today’s Budget is bad for growth and that will make it harder to cut the deficit.

"The new Office of Budget Responsibility has said in its report today that because of this Budget, growth next year will be lower than it would have been under our policies to support the economy through difficult times. They have revised growth for next year down from 2.6% to 2.3% because of the harm that this Budget does.

"Today’s Budget is bad for jobs and that too will make it harder to cut the deficit. The OBR forecast on page 84 that the price of his plans that he set out today in his Budget is tens of thousands of people out of work.

"Tens of thousands of more people out of work. Unemployment higher this year, next year and every year of this Parliament. For people affected this is a high price to pay and it’s the equivalent in scale of putting every working man and woman in the city of Coventry out of work.

"And the VAT rise makes this a budget of broken promises.

“Before the election the Prime Minister said he had no plans to put up VAT. And now in his first budget he puts up VAT.

“During the election campaign the Liberal Democrats attacked what they called the Tory secret VAT bombshell, Mr Deputy Speaker Little did we know that the Lib Dems had their own secret bombshell to drop on us - that they would vote for it."