Shadow Treasury minister: 'The Government’s economic plan is failing'

Labour’s Shadow Treasury minister, Chris Leslie, responding to today’s public sector finance figures, said:

These figures show that the deficit is rising because the Government’s economic plan is failing.

We have the highest ever borrowing for any August and borrowing is up by 22 percent so far this year compared to the same period last year.

With the longest double-dip recession since the Second World War, the Government has borrowedover £10 billion more in the first five months of this year than in the same period in 2011.

By choking off the recovery with tax rises and spending cuts which go too far and too fast George Osborne’s pledge to balance the books by 2015 is already in tatters and there are now serious questions about whether he can meet his debt target.

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Govt borrowing unchanged

The level of Government borrowing remained unchanged last month at £14.4 billion in August, equal to borrowing in the same month last year. It puts the Chancellor under pressure after he pledged to start bringing down debt in 2015/16.