Ed Miliband: Tory policies 'cost UK £116.5bn'

Credit: PA

The "abject failure" of the Government's economic policies has cost the Exchequer tens of billions of pounds in lost revenues, Ed Miliband has claimed.

The Labour leader released figures from the independent House of Commons Library which, it said, showed that lower- than-expected tax receipts and ballooning social security payments had cost £116.5 billion over the course of the parliament.

The party said the loss was the equivalent of almost £4,000 for every taxpayer - resulting in higher borrowing and the failure of Chancellor George Osborne to meet his promise to clear the deficit by the time of the general election in May.

According to the figures - released ahead of Mr Osborne's set-piece Autumn Statement on Wednesday - income tax receipts were £66 billion lower than forecast, national insurance contributions were down £25.5 billion while social security spending is £25 billion higher than originally planned.

Ed Miliband blamed George Osborne's economic policies for a "prolonged cost-of-living crisis". Credit: DPA

Speaking at an event tomorrow in Nottingham, Mr Miliband will say that millions of families remain trapped in "the most prolonged cost-of-living crisis for a century".

"For them this is a joy-less and pay-less recovery," he is expected to say.

"The Government's failure to build a recovery that works for every-day people and tackle the cost-of-living crisis isn't just bad for every person affected, it also hampers our ability to pay down the deficit.

"Britain's public finances have been weakened by a Tory-led Government overseeing stagnant wages which keep tax revenues low.

"The result has been David Cameron and George Osborne missing every single target they set themselves on clearing the deficit and balancing the books by the end of this parliament."