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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

Government marketing and communications

£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

4,

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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£

£

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£

£

£

£

£

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£

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£

£

£

£

£

£

£

£

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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)


13 years of waste ca

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oo

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00

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£2

£2

n CLG risia for D ry Pa Luxu er sofas n ig des 00

92

m

,0

£135

the Pot plants for partment Business De

£120,000

Aid to O lympic

hosts C hina

£30bn

rb

Ar M ti

£1 po 61 sts m "

ID

£4 inis nsta 70 try llat ,0 of ion 00 Jus at t t

Lo r wa d Ir v

Gove

rnm

ent la paym te en £740 t fees ,000

£1.1m

£6 llpap ine's 50 er a ,00 nd 0 refu

50 in 0 "s ci ta vi ff ls w er ith vi ce out

refurb Luxury alls' of Ed B m ent £3 depar tm

s, tem tal i n tion nme lip mo , ver Pro ng go hats m i 8 ie lud bean kes £ inc a d c nde fairy bra and e ms th bal of 1m p m 13 va re e £ ry tic xu us Lu of J ry ist

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

an

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

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£

£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

The Budget in Context  

The graphics show how Labour’s disregard for taxpayers’ money left the UK with the worst deficit of any country in the G20.

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