Ed Balls today accused George Osborne of creating an economic recovery that only benefits millionaires on his “Christmas card list”.
The shadow chancellor claimed that while hedge fund managers, bankers and other high earners were enjoying Mr Osborne’s tax cuts, normal “hard working people” were £1,600 worse off.
Mr Balls went on to accuse the Government of “panicky climb downs” and “broken promises” about how much the economy should have grown since 2010. The attack came as the Chancellor hailed economic data showing the country was on course for stronger growth, though rising costs were still out-stripping wages.
Mr Balls told the Commons: “The reason why this Prime Minister and this Chancellor believe most people are better off is because the people on their Christmas card list have seen their bonuses rise and their taxes cut this year.” He added: “They’re willing to stand up for the interests of the energy companies, the hedge funds and people earning over £150,000.
“[But] they aren’t willing to stand up for the millions of families and pensioners in our country struggling with rising energy bills, falling wages and higher childcare costs.”
Labour also released a poster accusing David Cameron and Mr Osborne of creating a “cost of living bombshell”. It mimicked the famous Tory campaign of the 1992 election which accused Neil Kinnock’s Labour of planning to hit the country with a “tax bombshell”.
Mr Balls claimed the Government was “in complete denial” about the rising cost of living, adding that for “most people” there was no recovery at all.
He highlighted comments Mr Osborne made three years age which he claimed were now broken promises. These included a prediction that the economy would have grown eight per cent by 2013. He said the Chancellor had also failed to get banks lending to small firms, to abolish the deficit and to preserve the UK’s triple A credit rating.
He added: “This complacent Chancellor thinks he deserves a pat on the back. And yes, with bank bonuses rising again and millionaires enjoying a big tax cut, his policy may be working for a few. But isn’t this the truth — hard-working people in this country aren’t better off with this out-of-touch Chancellor and Prime Minister.” Earlier Labour mocked the Tories, claiming they were dancing “to Ed Miliband’s tune” over the cost of living.
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A recent Coalition plan to reduce energy bills by £50 was seen as a direct response to the Labour leader’s pledge to freeze bills if he wins the election.
Shadow Treasury minister Cathy Jamieson said: “What the Coalition is actually doing at the moment is pretty much trying to dance to Ed Miliband’s tune. He was the one who took on the energy companies, he was the one who actually put this on the agenda. But the problem is that the Coalition don’t seem to be going far enough.”
Labour also called for more homes to be built, more apprenticeships and a business rate cut for small firms.
For families it wants to expand free childcare and introduce a jobs guarantee for young people and the long-term unemployed.
