TORY’S TUNNEL VISION
Chancellor shrugs off benefit cuts
CHANCELLOR Philip Hammond claimed there is “light at the end of the tunnel” yesterday after years of austerity, weeks before hitting the poor with deep benefit cuts.
Changes to the benefits system set to start in April will affect 11 million families and amount to £2.5billion in cuts to working-age benefits, according to research from the Resolution Foundation.
In tomorrow’s Spring Statement, Mr Hammond is expected to reveal better-than-expected fiscal forecasts and up to £10billion less borrowing than predicted last year.
But he told the BBC’s Andrew Marr: “There is light at the end of the tunnel, because what we’re about to see is debt starting to fall, after it’s been growing for 17 continuous years. That’s a very important moment for us.
“But we are still in the tunnel. We have to get debt down.”
He refused to give any comfort to local councils sliding towards bankruptcy due to funding cuts.
He said: “Of course they’re under some pressure. When we get to the Autumn Budget we’ll look at the numbers.”
Shadow Chancellor, Labour’s John McDonnell, said the Government needed to change direction.
He told the Andrew Marr Show: “Austerity is holding growth back. Wages are below what they were in 2007-08 so this isn’t a matter for celebration.
“What he [Mr Hammond] has done, very cunningly, has shifted the debt on to the shoulders of NHS managers, of head teachers and of local government leaders.”
Mr Hammond added: “We have a debt of £1.8trillion – 86.5% of our GDP... higher than the safe level.”
There is light at the end of the tunnel.. but we are still in tunnel PHILIP HAMMOND ON BRITAIN’S ECONOMY