InvestmentsDec 3 2014

Balls says Osborne’s borrowing targets are “in tatters”

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Government borrowing has been revised up for the next two years, the shadow chancellor has pointed out, claiming we are in a “cost of living crisis”.

Ed Balls, the shadow chancellor, has revealed this year borrowing will be revised up by £4.9bn and £7.6bn next year. Mr Balls has also pointed out the prime minister has borrowed £219bn more than he planned.

Mr Balls has said the borrowing targets are “in tatters” and the UK remains in a “cost of living crisis”.

Stagnant wages and low paid employment is hurting tax revenues, according to the shadow chancellor.

Working people are £1,600 a year worse off then they were in 2010, Mr Balls claimed. The squeeze is not only affecting family budgets, but has also led to the fall in tax revenues.

Mr Balls has asked the chancellor how much tax revenue has been lost due to stagnating wages and part-time employment.

He continued that the weakness of the eurozone cannot explain why export performance has been so poor. Since 2010, the UK has been the 16th out of the G20 in terms of exports and 22nd out of 28 countries in the EU.