The biggest risk to the UK economy is Theresa May’s Government – John McDonnell

John
McDonnell MP, Labour’s Shadow Chancellor, commenting on the Office for
Budget Responsibility’s (OBR) Fiscal Risks report this morning, said:

“The
Tories want to blame Brexit for their failures on the economy, but what this
report really reveals is that one of the biggest risks to our economy is Theresa
May’s weak government, and the last seven years of Tory economic failure.

“Given
recent poor economic news, showing a lost decade of productivity growth and
falling real earnings, the risks highlighted today by the OBR of slower
productivity growth, a persistent current account deficit, high level of
household debt, and weak business investment are extremely worrying.

“The
OBR have today put the final nail in the coffin of Tory economic credibility. They have confirmed health spending has been falling
under the Tories, social care is in crisis and local authority budgets have
been stripped to the bone. Rather than invest in our public services, the OBR
notes this government’s shambolic ‘periodic policy reversals’ while at the same
time giving away billions in tax breaks to the super rich.

“It
is a dereliction of duty of this government that the OBR can claim that after
seven years of austerity, the British economy, and working people, are less
prepared for the 50/50 risk of a recession in the next five years.

“Only
a Labour Government will negotiate a sensible jobs-first Brexit which does not
risk long-term damage to our economy and has set out a serious plan for the
public finances. Labour’s strategic investment will be underpinned by our Fiscal
Credibility Rule, to help build the high wage, high skill economy of the future
for the many not the few.”