Commenting ahead of Shadow Chancellor, Ed Balls’, speech at the Labour Party conference, Mark Littlewood, Director General at the Institute of Economic Affairs, said:
“Slowing the rate of deficit reduction would be disastrous. Ed Balls is again demonstrating that the Labour Party has no credible plan to deal with the current economic crisis. It is all well and good to talk about the need for growth, but it will not come about through denial of the total mess the UK’s finances are currently in.
“Talk of the coalition’s exceptionally modest spending cuts as being ‘too deep’ or ‘too fast’ is ludicrous. Even with the coalition’s cuts – which amount to less than 1% per year – the national debt will still increase by more than £250 billion between now and the end of this parliament.
“Getting the deficit down is a pre-requisite to economic growth, not an afterthought. And only through a robust program of deregulation and tax cuts will growth be boosted. Living in the belief that windfall profits from sales of nationalised banks will solve our national debt problem is pure economic fantasy land.”