The Budget in Context
Labour’s Legacy
+5.3
The worst deficit in the G20
United Kingdom
-11.4
-9.2 -8.2
-9.8
-11.0
-6.1
-5.2
-5.7
-5.2
-3.5
-5.0
Russia
-3.0
-1.5
-2.9
-2.9
Saudi Arabia
Brazil
Indonesia
Turkey
-3.4
-3.4
China
Mexico
Argentina
Australia
Italy
Canada
Germany
USA
Japan
India
France
South Africa
South Korea
+1.1
Source: IMF, Fiscal Monitor, 14 May 2010, p. 80 (http://www.imf.org/external/pubs/ft/fm/2010/fm1001.pdf)
13 years of waste
Benefit fraud and error
£30bn
ID
car ds
urb
sch
ice the
ts oo sh 00 oto ,0 ph 50 ial £2 ter s D nis eo MO Mi d vid the an for 0 rk wo Art 32,00
92
m
£25m
Botched NHS supercomputer
£120,000 Designer office chairs for the Audit Commission
The justice system
£25m
per day
t r en fo rty rtm pa depa ry sa d's er an niv ilib 0 An M 00 Ed 2, the for £2 alls ent golfb ded Departm s Bran ines 0 Bus
lptu £48,0 ass re Ch 00 y in Fo am rei pa gn gn Of e for fic the e
£2
£733m
£1
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£2.5bn
7,
00
0
Defence
,00
Deluxe espresso machines for empty Regional Fire control rooms £6,000
bn
£12
ts
ltan
nsu
£90m
Quangos
per day
£11bn NHS bureaucracy £4.5bn
Tax credit fraud and error
£2.8bn
Swimming against the tide
Lacking credibility
Labour’s isolation on the economy
Labour’s opposition to (nearly) every deficit cut
£2.1bn
per day
£14.8bn
£54,000
of Delays to procurement defence equipment
£
per day
Care for the elderly
the Pot plants for Business Department
Kin etic for Brit light Mad scu ish rid emb
£
£35m
per day
£135,00
£342m
Co
Police
£95m
ian for DCLG ry Paris Luxu ner sofas desig 0
e £2
hosts China
Schools
per day
£2
em
Aid to Olympic
Our daily spending on Labour's debt interest in context
£120m
ref Ar M t in
£1 t po 61 sts m "
Crippled by debt Debt interest
£4 inist stall 70 ry at ,0 of ion 00 Just at
,000
Entertainment at the Business Department
£1.1m
£740
Lor wa d
50 in 0 "st civ af il f wi se rv thou ice
Irv £6 llpap ine's 50 er and ,000
refurb Luxury of Ed Balls' ent £3m
departm
s, al item ntme tion lip ern mo Pro ng gov hats, m nie £8 udi incl d bea cakes nde fairy bra and ms the of m p 31 am £1 rev ry stice xu Lu of Ju try nis Mi
bal
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Gover nmen t paym ent feeslate
Labour’s total disregard for taxpayers’ money
vs
Deficit cuts supported by Labour
£12bn
support Government plans to reduce the deficit
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unfunded spending commitments
£
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Ed Miliband vowed to demonstrate Labour’s economic credibility by not opposing deficit cuts. ‘I said very clearly when I became leader: we’re not going to oppose every cut’ (The Andrew Marr Show, 16 January 2011). Yet since then, Labour have opposed over £50 billion of spending cuts and tax rises. The only savings (by 2014-15) they have supported are a £1bn reduction in the police budget, a £0.7bn saving in the roads programme, and a £0.4bn reduction in the Legal Aid budget.
The OECD
US Treasury Secretary
The IFS Fitch
35 business leaders
Signatories of letter to Daily Telegraph
The IMF
European Commission
Labour
PIMCO
The world’s biggest bond trader
The CBI
Standard and Poor’s
Deficit cuts opposed by Labour
Go to conservatives.com/deficit to read what these organisations and individuals say about our deficit reduction plans.
Living within our means How we’ll pay off Labour’s credit card
Labour maxed out the nation’s credit card with Government debt. If we don't take steps now to live within our means, we'll end up paying higher taxes or making deeper spending cuts to pay off the debt.
2009/10 – 11.1% DEFICIT 2010/11 – 10%
Dealing with the huge deficit we inherited is the single most important step towards recovery and growth. That’s why we have set out a five-year plan to reduce the deficit and get our economy back on a sustainable footing.
2011/12 – 7.6%
2012/13 – 5.6%
The 2011 Budget marks another step away from the economic recklessness of the Labour Government. They brought Britain to the brink of bankruptcy, doubling the national debt and leaving us with the biggest deficit in our peacetime history. Their legacy is £120 million a day being spent on debt interest alone.
World Bank
Gordon Brown's former Trade Minister
The Institute of Directors G20
Moody’s
Tony Blair Lord Digby Jones
British Chambers of Commerce
£54bn
oppose Government plans to reduce the deficit
Tim Geithner
Federation of Small Businesses
For more information, go to: tinyurl.com/6bm82l6
£
The Budget in Context Ed Balls and Ed Miliband were Gordon Brown’s chief economic advisers and the architects of this mess. The sad thing is that having burdened our children and grandchildren with all this debt, they now have no credible plan to deal with the deficit. They’ve opposed our tough decisions on VAT, welfare reform and deficit reduction, and offered nothing but unfunded spending commitments and opportunistic attacks.
2013/14 – 3.5%
2014/15 – 1.9%
2015/16 – 1%
This booklet illustrates the damage Labour did to our economy, how our plans will get Britain back on track, and why Labour’s current approach is fundamentally flawed.
Labour’s Legacy
+5.
3
The worst deficit in the G20
United Kingdom
-11.4
-11.0
-9.8
-9.2 -8.2
-6.1
-5.7
-5.2
-5.2
-5.0
-3.5
-3.4
-3.4
-3.0
-2.9
Saudi Arabia
Brazil
Indonesia
Russia China
Turkey
Mexico
Argentina
Australia
Italy
Canada
Germany
South Africa
France
USA
Japan
India
South Korea
+1.1
-2.9
-1.5
Source: IMF, Fiscal Monitor, 14 May 2010, p. 80 (http://www.imf.org/external/pubs/ft/fm/2010/fm1001.pdf)
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£120,000
Aid to O lympic
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£30bn
rb
Ar M ti
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ID
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ent la paym te en £740 t fees ,000
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50 in 0 "s ci ta vi ff ls w er ith vi ce out
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in
M
4,
Entertainment at the Business Department
Labour’s total disregard for taxpayers’ money
Benefit fraud and error
Designer office chairs for the Audit Commission
£342m
£54,000
of ocurement Delays to pr ment defence equip
£733m
£1
bn
Government marketing and communications
£2.5bn
Tax credit fraud and error
£2.8bn
£12
Deluxe espresso machines for empty Regional Fire control rooms £6,000
n
Co
ts
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lt su
nt r fo tme y r t ar pa dep y ar 's rs nd ve a ni ilib 0 An M 00 Ed 2, he or t £2 lls f t lfba en d go par tm nde e Bra ess D in Bus ,000
Kin e for tic lig B Ma ritish ht scu dri d £ emb lpture 48, assy Ch 000 in Fo am re pa ig n gne Of fic for e £2 the
7,
00
0
Quangos
£11bn NHS bureaucracy £4.5bn
Botched NHS supercomputer
£14.8bn
Crippled by debt
Our daily spending on Labour's debt interest in context Debt interest
£120m
Schools
£95m
Police
£35m per day
per day
per day
Care for the elderly
£25m
Defence
£90m per day
per day
The justice system
£25m
per day
Lacking credibility Labour’s opposition to (nearly) every deficit cut £
£
£2.1bn Deficit cuts supported by Labour
vs
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
£
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£
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£
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£
£
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£
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£
£
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£
£
£
£
£
£
£
£
£
£
£54bn Deficit cuts opposed by Labour
Ed Miliband vowed to demonstrate Labour’s economic credibility by not opposing deficit cuts. ‘I said very clearly when I became leader: we’re not going to oppose every cut’ (The Andrew Marr Show, 16 January 2011). Yet since then, Labour have opposed over £50 billion of spending cuts and tax rises. The only savings (by 2014-15) they have supported are a £1bn reduction in the police budget, a £0.7bn saving in the roads programme, and a £0.4bn reduction in the Legal Aid budget. For more information, go to: tinyurl.com/6bm82l6
Swimming against the tide Labour’s isolation on the economy
support Government plans to reduce the deficit oppose Government plans to reduce the deficit
Tim Geithner
Federation of Small Businesses
The OECD
US Treasury Secretary
The IFS Fitch
35 business leaders
Signatories of letter to Daily Telegraph
The IMF
European Commission
World Bank
Gordon Brown's former Trade Minister
The Institute of Directors
Labour
Tony Blair Lord Digby Jones
British Chambers of Commerce
G20
Moody’s
PIMCO
The world’s biggest bond trader
The CBI
Standard and Poor’s
Go to conservatives.com/deficit to read what these organisations and individuals say about our deficit reduction plans.
Living within our means How we’ll pay off Labour’s credit card
Labour maxed out the nation’s credit card with Government debt. If we don't take steps now to live within our means, we'll end up paying higher taxes or making deeper spending cuts to pay off the debt.
2009/10 – 11.1% DEFICIT 2010/11 – 10%
Dealing with the huge deficit we inherited is the single most important step towards recovery and growth. That’s why we have set out a five-year plan to reduce the deficit and get our economy back on a sustainable footing.
2011/12 – 7.6%
2012/13 – 5.6%
2013/14 – 3.5%
2014/15 – 1.9%
2015/16 – 1%
Promoted by Alan Mabbutt on behalf of the Conservative Party, both of 30 Millbank, London SW1P 4DP