Pat McFadden: Labour must fashion a new economic vision

SINCE the election, the new Government has made a determined effort to pin the blame for all their decisions on the previous Labour Government.

But it is not true that the Labour Government either lost the plot on economic competence or left a situation in which the only path that could be followed was the one that has been chosen.

We acted to stop the recession from turning into a depression and it meant lower unemployment than in previous recessions, fewer repossessions and fewer business failures.

Initiatives like Time to Pay – flexible tax help for firms in trouble – helped 200,000 business stay afloat and keep employing people.

The impact of the recession meant borrowing rose – but this was true in many other countries, too. And we recognised that the deficit would have to come down and produced a plan to halve it over four years.

The Government's own Office for Budget responsibility confirmed our plan was on track.

It would have meant tough decisions – there is no point in denying that – but it would have dealt with the deficit in a very different way, on a different timescale and with different priorities than the Government.