View more on these topics

AS: Balls slams ‘catastrophic errors’

Labour Shadow Chancellor Ed Balls has attacked the Chancellor’s autumn statement, saying it is a continuation of the “catastrophic” errors which have undermined efforts to balance Government finances.

In the emergency Budget in June, Chancellor George Osborne set out plans to eliminate the structural deficit and reduce state debt as a proportion of Government income by the end of the Parliament in 2015. He worked into that plan a year’s headroom, allowing him to put that deadline back to 2016. That headroom, he told MPs during his autumn statement this week, “has now disappeared”.

Responding to Osborne, Balls said rising borrowing and unemployment were evidence the Government’s austerity drive was making the situation worse.

He said: “Even judged by the one objective this Chancellor set himself, to get the deficit down, he is failing. Going further and faster has been utterly counter-productive and self-defeating. It has backfired. We have had all of the pain but none of the gain. Our fear is that once again the Chancellor is making a catastrophic error of judgement, refusing to learn the lessons of history or economics and to shift to a more balanced plan.”

Osborne said the Office for Budget Responsibility still expects the Government to meet the 2016 deadlines. He said: “As far as I can see, the Shadow Chancellor complains we are borrowing too much and then calls for more borrowing.”

Osborne accused Labour of pursuing the “stupid policy” of trying to push up the cost of Government borrowing after Balls slammed the Government for clinging to the “illiterate fantasy” that low long- term interest rates are a sign of economic credibility rather than stagnation.

Recommended

Accord strikes the right note

Accord Mortgages has launched a new range of mortgages that are available up to 85 per cent of valuation to a maximum of £150,000.

Vanburgh switching to value theme for investment trusts

Hawksmoor Investment Management is positioning its Vanbrugh fund to benefit from an improvement in the economic environment and to withstand further turmoil. It has been disappointed with Vanbrugh’s recent performance but plans to ride out the short-term difficulties by focusing on undervalued assets. In October, the firm reviewed all Vanbrugh’s holdings. Artemis special situations was […]

Bad heir daze

Mark Green, head of tax and estate planning at Legal & General Savings, says advisers need to take action to overcome clients’ inertia on inheritance tax planning

11

High Court rejects unions’ CPI pensions challenge

The High Court has rejected a claim by public sector unions that the Government’s decision to switch indexation for future pension increases from RPI to CPI was unlawful. In the June 2010 Budget, Chancellor George Osborne (pictured) announced the decision to switch the measure for pension inflation to the consumer price index, which, on average, […]

Why your clients need some tough love

In any relationship that matters, professional or personal, you should be upfront with someone if you think they’re making a decision or doing something they might later regret. Being honest with someone and having their best interests at heart, however hard the message, is key to building trust in any relationship. So how does this […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Balls should be slammed in his own surname for having been a willing party to the catastrophic errors of Labour’s handling of the economy.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com