Labour call on Chancellor to rethink austerity plan

Labour have called on Chancellor George Osborne to rethink the speed and scale of his deficit reduction plan ahead of tomorrow’s Budget.

Osborne has ruled out any further tax increases or spending cuts in tomorrow’s Budget but Shadow Treasury chief secretary Angela Eagle says those already in place risk derailing the economy.

She says: “George Osborne needs to snap out of his denial and rethink the speed and scale of cuts and tax rises which are hitting families hard in the pocket and derailing our economic recovery.”

“He needs to think again and get a plan B which puts jobs and growth first, before it is too late.”

Speaking on the Andrew Marr programme on Sunday Osborne said the measure in the Budget last year were an economic “rescue mission”.

Eagle says: “Osborne’s claim to have mounted a rescue mission on the British economy shows just how out of touch he is with what is happening in the real world.

“His reckless plan to cut too deep too fast has taken a growing economy with falling unemployment and delivered an economy which shrank at the end of last year, a 17 year high in unemployment and rising inflation.”