George Osborne is finally agreeing with principled position Labour took on IMF funding last summer

Ed Balls MP, Labour’s Shadow Chancellor, responding to George Osborne’s interview with Sky News’ Murnaghan programme, said:

“It is good to see the Chancellor’s new stance on IMF funding. He is finally agreeing with the principled position Labour took last summer which he opportunistically criticised at the time.

“As we said then and the Chancellor is now saying too, we need to see the colour of the eurozone’s money before additional funding from Britain to the IMF can be agreed. While the IMF has a vital role to play around the world and should have the necessary resources it needs to do that, there should be no IMF funding to plug the gap in the eurozone’s bail-out fund and do the job the European Central Bank should be doing.

“George Osborne now needs to start showing some leadership in helping to solve the eurozone crisis by pressing for policies that support jobs and growth across Europe and for the European Central Bank to have the backing to act as lender of last resort.”

Rachel Reeves MP, Labour’s Shadow Chief Secretary to the Treasury, added:

“This complacent and out of touch Chancellor still hasn’t grasped the scale of Britain’s jobs and growth crisis. With unemployment at a 16 year high, our stalled economy now in reverse and £158 billion of extra borrowing to pay for this economic failure, we desperately need a real plan for jobs and growth in next month’s Budget.

“People will be on the look out for the Chancellor giving with one hand and taking away lots more with the other hand. Without a change of course in the Budget families with children will lose an average of £580 per year from April as a result of this Government’s policies, according to the IFS.

“Labour is calling for substantial and fair tax cuts to ease the squeeze on families and pensioners and jump-start our stalled economy. A temporary VAT cut is the quickest and fairest option as it will help those who don’t pay income tax, like pensioners, and cut almost 3p off the price of a litre of petrol. We also need tax breaks for small firms taking on extra workers, infrastructure investment brought forward, and a bank bonus tax to fund 100,000 youth jobs, which are part of Labour’s five point plan for jobs.”

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Posted February 26th, 2012 by Ed's team