The Conservatives have warned that Labour has maxed out the nation's credit card as Andy Burnham takes office facing a borrowing crisis. Shadow Chancellor Sir Mel Stride said Labour had sent borrowing soaring by an extra quarter of a trillion pounds across this Parliament.
Debt remains high by historical standards
His attack came as the Office for National Statistics admitted debt remains high by historical standards. Annual debt interest payments are forecast to hit £137.1 billion by 2030-31, according to the Office for Budget Responsibility. Excluding the global Covid pandemic, the borrowing figures are the highest in two decades.
Sir Mel Stride's warning
Sir Mel said: 'Labour have maxed out the nation's credit card and sent borrowing soaring by an additional quarter of a trillion pounds across this Parliament. As the ONS says today, debt still remains high by historical standards. If Andy Burnham and John Healey are really serious about the future of our economy then they must get borrowing under control. They can't just fiddle the figures once again - they have to control spending, especially welfare, and tell us exactly where the money will come from for every new spending commitment.'
He added: 'The Conservatives are the only party that have set out a coherent plan to cut welfare spending, cut borrowing and get Britain working again.'
Labour's tax and debt outlook
According to OBR figures, Labour could end up taxing £240 billion more than under the plan it inherited from the previous government. The Government's own reports have warned that under Labour's current path, 'debt will grow explosively'. The watchdog has previously warned it was 'not plausible' that Britain, or any other country, could remain on such a path.
John Healey, the new Chancellor, said he would focus on building 'a new economy, build new hope and advance the working people of this country' when he took office.
