The five questions Alan Johnson must answer
Transport Secretary Philip Hammond has today called on Alan Johnson, the new Shadow Chancellor, to answer five key questions about Labour’s deficit plan. When Ed Miliband was elected leader of the Labour Party he said: ‘I’m not going to oppose every cut that the coalition comes up with’. However, so far, he’s opposed every cut the coalition has proposed except for ID cards – something Alan Johnson himself has said will not save much money.
If Labour wants to be credible, its new Shadow Chancellor must answer the following five questions:
1. Alistair Darling’s deficit reduction plan has been criticised as not credible by the Governor of the Bank of England, the IMF, the OECD and the CBI. Why then do you still back it?
2. Ed Miliband has pledged to reverse Child Benefit for higher rate taxpayers by raising taxes. Do you promise to restore it if elected? Which taxes will you put up to pay for it?
3. Ed Miliband has said you oppose the VAT rise, do you promise to reverse it after the election? Which taxes will you put up or what will you cut to pay for it?
4. Ed Miliband promised an alternative Labour spending review by 20 October. Will you still commit to publishing this?
5. Ed Miliband has refused to cut the deficit faster than Alistair Darling’s plan – so are you happy to be spending at least £184 million every day on debt interest in five years time?
Commenting, Philip Hammond, Transport Secretary, said “I congratulate Alan Johnson on his appointment as Shadow Chancellor. But if he is to be taken seriously in his new job, he must answer how Labour intends to reduce the deficit, when they are opportunistically opposing nearly every cut this Government has set out. Ed Miliband promised a shadow spending review. Alan Johnson must now produce that plan before 20 October to show how Labour would clear up the mess they left Britain in. Unless he does, he and Ed Miliband will lack any economic credibility.”
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