George Osborne's Autumn Debt crisis Statement
The Chancellor cuts UK growth forecasts for the next four years and says it will meet its budget goals by the end of this parliament, although warned the eurozone could drag the UK into recession.
George Osborne was forced to admit he hasn't two pennies to rub together and has resorted to a massive increase in borrowing as a lack of growth and unemployment means he will raise around £156bn less in tax than forecast.
Osborne acknowledge that the British economy may only grow by 0.9 per cent this year, rather than 1.7 per cent as previously thought.
Next year, there will only be an estimated 0.7 per cent increase in economic output, rather than 2.5 per cent.
In response to the statement, Labour Shadow Chancellor Mr. Ed Balls said the fact that "growth is flatlining this year, next year and the year after" showed that the Chancellor cut spending too fast and his plans were "a truly colossal failure".
"We have rising unemployment and more borrowing than planned a year ago and as a result his economic and fiscal strategy is in tatters," he said
Another 4 years of no growth, rising taxes, rising unemployment, closing businesses, lost consumer confidence and even more government waste of tax payers money...
The overall effect of the Treasury's new plans will be to reduce the incomes of those in the bottom 30 per cent of earners and to benefit those in the top 60 per cent. The Chancellor's decision will also push more children into poverty, IFS researchers conclude.http://www.independent.co.uk/news/uk/politics/osbornes-impact-laid-bare-the-rich-get-richer-and-the-poor-get-poorer-6270235.html