Labour makes official complaint over Cameron's debt lies

Rachel Reeves writes to the UK Statistics Authority after Cameron claimed in a Conservative Party political broadcast that the coalition "was paying down Britain’s debts".

In last night's Conservative Party political broadcast, David Cameron boasted that the coalition "was paying down Britain’s debts". Except, of course, it's not. Since Cameron entered office, the national debt has risen from £811.3bn (55.3 per cent of GDP) to £1.11trn (70.7 per cent of GDP) and, owing to the lack of growth, the government is set to borrow billions more than Labour planned (the plan Cameron claimed would "bankrupt" Britain).

By 2014-15, the Office for Budget Responsibility forecasts that debt will have increased to £1.4trn (79 per cent of GDP). It's true that the coalition has reduced annual borrowing (the deficit) by 24 per cent since coming to power (from £159 in 2009-10 to £121.6bn in 2011-12), albeit by slashing infrastructure spending, but it's a flat-out untruth to claim that it's "paying down" our debts. 

In response, Labour's shadow chief secretary to the Treasury Rachel Reeves, a former Bank of England economist, has written to the chair of the UK Statistics Authority, Andrew Dilnot, asking him to investigate Cameron's misleading statement. It's worth noting that the Stats Authority has previously forced the Conservatives to correct their claim to have increased real-terms spending on the NHS "in each of the last two years", so there's a good chance of a critical response. 

Here's Reeves's letter in full. 

Andrew Dilnot CBE
Chair, UK Statistics Authority
1 Drummond Gate
London
SW1V 2QQ

24 January 2013

Dear Andrew

I am sure you will agree that it is vital that public debate is informed by accurate use of statistics.

However, in a Party Political Broadcast by the Conservative Party last night, the Prime Minister said:

“We are now halfway through the coalition’s time in government and in two and a half years we have achieved a lot but I know people don’t just want to hear from me, they want to know the facts… So though this government has had to make some difficult decisions, we are making progress. We are paying down Britain’s debts.”

As you will be aware, figures from the Office for National Statistics published this week show that the national debt is not being paid down, but is actually rising. Since this government came to office, public sector net debt has risen from £811.3 billion (55.3 per cent of GDP) in the second quarter of 2010, to £1,111.4 billion at the end of December 2012 (70.7 per cent of GDP).

The Office for Budget Responsibility has also forecast that public sector net debt will continue to rise and the government’s target to get it falling by 2015-16 will not be met.

This is not the first time government Ministers have made similar claims about the national debt. However, last night’s Party Political Broadcast is the first occasion I am aware of when the Prime Minister has made such a claim in a scripted broadcast. This suggests that the Conservative Party may be attempting to deliberately mislead the public about these statistics and the government’s record.

I would be grateful if you could bring some clarity to the situation and advise on how we can ensure that in the future debate on the national debt is accurate and based on the facts.

Yours sincerely,

Rachel Reeves MP

Shadow chief secretary to the Treasury Rachel Reeves.

George Eaton is political editor of the New Statesman.

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This is no time for a coup against a successful Labour leader

Don't blame Jeremy Corbyn for the Labour Party's crisis.

"The people who are sovereign in our party are the members," said John McDonnell this morning. As the coup against Jeremy Corbyn gains pace, the Shadow Chancellor has been talking a lot of sense. "It is time for people to come together to work in the interest of the country," he told Peston on Sunday, while emphasising that people will quickly lose trust in politics altogether if this internal squabbling continues. 

The Tory party is in complete disarray. Just days ago, the first Tory leader in 23 years to win a majority for his party was forced to resign from Government after just over a year in charge. We have some form of caretaker Government. Those who led the Brexit campaign now have no idea what to do. 

It is disappointing that a handful of Labour parliamentarians have decided to join in with the disintegration of British politics.

The Labour Party had the opportunity to keep its head while all about it lost theirs. It could have positioned itself as a credible alternative to a broken Government and a Tory party in chaos. Instead we have been left with a pathetic attempt to overturn the democratic will of the membership. 

But this has been coming for some time. In my opinion it has very little to do with the ramifications of the referendum result. Jeremy Corbyn was asked to do two things throughout the campaign: first, get Labour voters to side with Remain, and second, get young people to do the same.

Nearly seven in ten Labour supporters backed Remain. Young voters supported Remain by a 4:1 margin. This is about much more than an allegedly half-hearted referendum performance.

The Parliamentary Labour Party has failed to come to terms with Jeremy Corbyn’s emphatic victory. In September of last year he was elected with 59.5 per cent of the vote, some 170,000 ahead of his closest rival. It is a fact worth repeating. If another Labour leadership election were to be called I would expect Jeremy Corbyn to win by a similar margin.

In the recent local elections Jeremy managed to increase Labour’s share of the national vote on the 2015 general election. They said he would lose every by-election. He has won them emphatically. Time and time again Jeremy has exceeded expectation while also having to deal with an embittered wing within his own party.

This is no time for a leadership coup. I am dumbfounded by the attempt to remove Jeremy. The only thing that will come out of this attempted coup is another leadership election that Jeremy will win. Those opposed to him will then find themselves back at square one. Such moves only hurt Labour’s electoral chances. Labour could be offering an ambitious plan to the country concerning our current relationship with Europe, if opponents of Jeremy Corbyn hadn't decided to drop a nuke on the party.

This is a crisis Jeremy should take no responsibility for. The "bitterites" will try and they will fail. Corbyn may face a crisis of confidence. But it's the handful of rebel Labour MPs that have forced the party into a crisis of existence.

Liam Young is a commentator for the IndependentNew Statesman, Mirror and others.