Labour: 'Osborne risks long-term damage to our economy'

Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, responding to today’s public sector finance figures, said:

This is a damning indictment of a Chancellor who promised to secure the recovery and get the deficit down.

His failed plan has delivered the exact opposite - a double dip recession which is leading to soaring borrowing. What more evidence does the Government need that their plan has failed and they need to change course?

George Osborne’s decision to raise taxes and cut spending too far and too fast has choked off the recovery and as a result the Government’s pledge to balance the books by 2015 is now in tatters.

Unless the Chancellor takes urgent action now he will end up not only borrowing billions more to pay for economic failure but he risks causing long-term damage to our economy too.

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Trust in Osborne at record low

Public trust in the Chancellor is at its lowest since polling on the issue for the ITV News Index by ComRes began in October 2010. Only 16% of voters questioned had faith in him. It comes as public sector net borrowing increased by £600m in July