McDonnell tells 'weak' Hammond to end cuts to public spending

SHADOW CHANCELLOR John McDonnell will brand Philip Hammond 'weak' today as Labour calls on the Government to permanently end its austerity drive.
Shadow Chancellor John McDonnellShadow Chancellor John McDonnell
Shadow Chancellor John McDonnell

Mr Hammond is expected to set out plans next week that will slow the pace of spending cuts compared to those of his predecessor but Mr McDonnell will call on the Chancellor to go further.

He will argue the Government should abandon austerity together and end “tax giveaways for the wealthy”.

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Mr McDonnell will portray the Chancellor as a man overuled by the Prime Minister on the major issues and ignored by Ministers overseeing Brexit.

Pointing to Nissan’s recent decision to build a new model at its Sunderland plant following assurances about Brexit from the Government, Mr McDonnell will suggest the carmarker knows more about Britain’s strategy for leaving the European union than Mr Hammond.

“Britain cannot afford a weak Chancellor who cannot find his voice, when our country faces the biggest economic challenges for a generation.

“It’s time he steps up to the task, and stands up to his Cabinet colleagues,” Mr McDonnel will say.

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The Shadow Chancellor will set out three “tests” Labour will apply to Mr Hammond’s first Autumn Statement since entering the Treasurynext week.

Along with an end to austerity, he will call for those on “low and middle incomes” and “properly funded support” for public services.

In the wake of the Brexit vote Mr Hammond has already scrapped predecessor George Osborne’s plan to have a surplus on public spending by next election.

However, Mr McDonnell will argue a more fundamental shift is needed.

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In a speech delivered in London he will say: “There’s been a change of rhetoric but the priorities remain the same.

“The tax giveaways to the wealthy remain. “Just as the cuts to the poor and the vulnerable remain. The Tories failure on the economy precedes the referendum, and they will try their best to convince us otherwise, but no one will believe them. Even their own leaked Treasury documents admit it.”

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