McDonnell: “Weak” chancellor must use Autumn Statement to end austerity

“Next week we will see a Tory Chancellor admit that he has not met any of the targets in the 2010 Conservative Party manifesto.” John McDonnell will claim in a speech today.

He is expected to slam the Tories record on “tax giveaways” for the wealthiest, whilst austerity policies leave those at the bottom worse off.

McDonnell, shadow chancellor, will today lay out the three tests that he believes the Chancellor’s autumn statement will have to fulfil. 

He shall say that Philip Hammond must:

• End austerity, not merely postpone it – guaranteeing serious investment underpinned by a credible fiscal framework
• Provide genuine support for those in low and middle income work
• Secure funding for out public services – ensuring that the NHS and social care are preserved

He will slam the Tories for their economic credibility, saying: “Labour’s Fiscal Credibility Rule remains intact while the Tories’ fiscal charter lies in tatters.”

He is expected to criticise Conservative weakness, saying that: “Britain cannot afford a weak Chancellor who cannot find his voice, when our country faces the biggest economic challenges for a generation. It’s time he steps up to the task, and stands up to his Cabinet colleagues.”

“According to reports just this weekend, the Prime Minister and Chancellor are too busy fighting each other than fighting for an ambitious Brexit deal for Britain.”

“We appear to have a Chancellor who is slapped down by his Prime Minister when he makes an announcement, and ignored by her as she sets his economic policy for him.”

He will say of his tests that they “are based on what we need as a country; as we need a credible fiscal framework that supports Brexit; we need actual support for those in work on low and middle incomes; and we need secure and properly funded public services.”

“We want to see an end to austerity, with the NHS and social care properly funded and ESA and Universal Credit cuts reversed.”

He is also anticipated to attack the Government’s Brexit strategy, saying: “They have the wrong ambitions for our economy, and the wrong ambitions for Brexit, which means they will continue to undermine the ambitions of working people. It also means we will be left with a Brexit that works only for bankers and the rich, instead of one that’s based on fairness and works for the rest of us.”