Last week the Chancellor George Osborne delivered his last Autumn Statement before the election.
I know from my regular sessions speaking to my constituents on the phone and on their doorstep that whilst George Osborne talks of ‘recovery’, any recovery is for the wealthy few and not the many. Living standards continue to be squeezed and people continue to feel that they are no better off.
The Conservatives promised living standards would rise, but while millionaires have got a huge tax cut working people are now £1,600 a year worse off.
And as we heard last Wednesday, it gets worse. Not only has the government failed to make people in Wirral better off, they have also failed to balance the books.
The Tories promised to eliminate the deficit by 2015 but with less money coming in because of their wrong economic decisions, they’ve broken their promise.
Because the Chancellor has failed to deliver rising living standards he has now borrowed £219 billion more than he planned in this Parliament.
This is because there is a fundamental link between the living standards of everyday working people such as those in Wirral and Britain’s ability to deal with the deficit. People are not working all the hours they’d want to, which means income to the Treasury is lower too.
Because wages aren’t rising and too many are stuck in low-paid jobs, the tax revenues we need to get the deficit down aren’t coming in.
Labour want to balance the books in a fair way and for everybody to benefit from growth. Labour’s plan will raise the minimum wage, expand free childcare for working parents, scrap the bedroom tax and cut business rates for small firms.
We will balance the books in a fairer way, starting by reversing the Tories’ £3 billion a year tax cut for the top one per cent of earners.
By Alison McGovern MP for Wirral News