cost of living crisis

George Osborne is desperate to stop talking about the cost-of-living crisis on his watch – Balls

Ed Balls MP, Labour’s shadow chancellor, responding to George Osborne’s speech on the economy, said:

“George Osborne is desperate to stop talking about the cost-of-living crisis on his watch. But that won’t stop working people from doing so as they are on average £1600 a year worse off under the Tories and prices are still rising faster than wages.

“Nor will the Chancellor admit the reason why he is being forced to make more cuts is because his failure on growth and living standards has led to his failure to balance the books by 2015.

“This failure means Labour will have to make cuts and in 2015/16 there will be no more borrowing for day-to-day spending. But we will get the deficit down in a fair way, not give tax cuts to millionaires. And we know that the way to mitigate the scale of the cuts needed is to earn and grow our way to higher living standards for all.

“The social security bill is rising under George Osborne, but the best way to get it down for the long-term is to get people into work and build more homes. The Tories should back our compulsory jobs guarantee for young people and the long-term unemployed. And in tough times it cannot be a priority to continue paying the winter fuel allowance to the richest five per cent of pensioners.

“What we need is Labour’s plan to earn our way to higher living standards for all, tackle the cost-of-living crisis and get the deficit down in a fairer way.”

For many people, this is no recovery at all

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George Osborne was in self-congratulatory mood in the House of Commons this morning as he delivered his Autumn Statement. Growth has returned to the economy; borrowing is falling; we are on the road to recovery. Yet the complacent Chancellor failed to recognise the cost-of-living crisis that is engulfing hard-working people in Birmingham and across the country. For many people, whose wages remain low while prices soar, this is no recovery at all.

Osborne remains convinced that his economic strategy is working, and reeled off statistic after statistic that seemed to prove his point. The reality, however, is that despite growth returning, the economy is still under-performing – growth is significantly lower than it was forecast to be in 2010, and the deficit will still be £79 billion in 2015, after we were promised it would be eliminated by then. Three years of stagnation means that Osborne has missed all of his economic targets, and people are suffering as a result; for 98% of the time his government has been in office, prices have risen faster than wages. This is not a recipe for economic success. The plan has been hurting, but it has not been working. While those right at the top continue to  enjoy their tax cuts, everybody else has to contend with bills becoming more unaffordable and stagnating wages, leaving people up to £1,600 a year worse off under the Tory-led government.

Busy patting himself on the back, the Chancellor offered little to those whose living standards are suffering the most. On energy costs, he stopped short of matching Labour’s promise to freeze prices, meaning people in our city will be forced to choose between heating and eating this winter and next; there are more welfare cuts to come, plunging vulnerable people further into difficulty; there remains no commitment to introducing a living wage, or even a substantial increase in the minimum wage. Every time Osborne has the chance to make life easier for ordinary people, he makes things worse. There were some token measures such as the cancellation of the planned rise in fuel duty, but really this was an Autumn Statement that did nothing substantial to help ordinary people. Even if the economy continues to grow, Birmingham residents will rightly have little faith in a plan that does nothing to improve their lives.

Today’s statement did not change anything. The government continues to allow those at the top to get richer while ignoring the declining living standards of the majority of people. The economy may finally be growing again, but George Osborne is still doing nothing to ensure that the recovery reaches everybody. For many people in Birmingham and in Britain, this is no recovery at all.

Labour campaign to ‘freeze that bill’

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Under Ed Miliband your gas and electricity bills will be frozen until 2017. Saving 27 million households and 2.4 million businesses money. Ed shares why he’d put the interests of consumers before energy companies: http://bit.ly/162o0U7

Kerry Jenkins, Hall Green’s Labour Candidate for 2014 said:

“Under David Cameron, Britain’s families are facing a cost of living crisis. Prices have risen faster than wages in 38 of the 39 months that David Cameron has been in Downing Street and energy bills have gone up by almost £300. David Cameron only stands up for the privileged few. His failure to tackle rip-off bills has meant that many people in Hall Green are struggling to pay their bills.

“Ed Miliband says Labour will freeze prices until the start of 2017 if Labour wins the next election. This will save a typical household £120 a year and this will be a huge help for many who are facing a cost of living crisis. I welcome this pledge but the reality is that people round here need help now so I’m calling on David Cameron to freeze our bills now.”

“For that to happen, we need as many people as possible to support this campaign, sign the petition and get involved. We will be launching this campaign on Saturday 9th November and you can visit us outside the Co-Op on the Stratford Road, B28 8AS between 10 and 12.”

You can sign the petition at http://action.labour.org.uk/page/s/david-cameron-freezethatbill

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