Labour’s plan to reduce the deficit was not credible.
“What we have not inherited from our predecessor is a credible plan to reduce their record deficit.”
(Source – Osborne Budget Speech, 22 June 2010)
Labour’s plan was to halve the deficit in four years. The independent Office of Budget Responsibility (OBR) set up by the Con Dem Government analysed Alistair Darling’s original 2010 Budget and their conclusion was that Labour’s proposals were already working and would indeed MORE THAN halve the deficit in four years:
“Our central forecast is that borrowing will fall from 11.1 per cent of GDP (£156.1 billion) in 2009-10 to 3.9 per cent of GDP (£71 billion) in 2014-15. The deficit on the current budget falls from 7.6 per cent of GDP to 2.7 per cent of GDP over the same period. These improvements are driven by the expected recovery of the economy over this period and by the policy measures announced by the previous Government to reduce the deficit.”
(Source: OBR Pre-Budget Forecast 14 June 2010)
From Howard Dawber.