News from The Labour Party

Yvette Cooper MP: Cameron’s proposal for spending cuts is economic madness

Yvette Cooper MP, Labour’s Chief Secretary to the Treasury, responding to David Cameron’s speech today, said:

“David Cameron’s proposal for spending cuts in a recession is economic madness.

“This means cuts in support for the unemployed to get back into work, cuts in training and apprenticeships, business, housing, transport and regeneration. And it also means cuts in things like the police, Sure Start, funding for local councils and important investment in our future.

“At a time when President-elect Obama, and governments across the world are increasing public spending to support jobs and the economy, the Conservatives are completely isolated in calling for spending cuts.

“Nor will their tax proposals help most people or businesses get through the recession.

“Almost 60% of pensioners won’t benefit from this as they already pay no tax. And the Conservatives are opposing our £60 boost for every pensioner this month.

“The vast majority of ordinary people also won’t benefit as they can already put all their annual savings into tax free savings schemes such as ISAs which allow £3,600 cash savings a year. Even for those who don’t, savers on less than £30,000 a year are only likely to benefit by £5 a year – far less than the average household will benefit from the VAT cut.”

Other news from The Labour Party

• Miliband tells Cameron: Save 6,000 nurses by abandoning NHS reorganisation now - 5 February 2012
• "We need what you might call 'one nation banking'" - 3 February 2012
• Burnham: "Mental health must move from the edges to the centre of the NHS" - 31 January 2012