Ed Miliband would increase borrowing and debt by £20.7 billion in just one year

A comprehensive analysis of Labour’s policies published today shows that Ed Miliband would increase borrowing and debt by £20.7 billion in just one year.

The astonishing figure is the equivalent of £1,200 additional borrowing for every working household in the country – hurting the economy and loading our children with more debt than they could ever hope to repay.

Ed Miliband had promised that he would not make any unfunded spending commitments at this General Election.

But since Labour made this pledge in June 2013, the party’s frontbenchers have made:

· £23.26 billion of spending proposals for 2015/16;

· Only £2.52 billion of proposals to raise money in that year.

As a result, Labour have a £20.7 billion black hole in their spending plans – money which could only be found through more borrowing and higher taxes.

The evidence produced today shows that Britain has a clear choice at the next General Election. We can continue on the road to a stronger economy with a competent Conservative team that have a long term plan. Alternatively we can choose the chaos that comes with Ed Miliband in Downing Street, leading our country to economic ruin just as Labour did before.

Please find attached a pdf: A COST ANALYSIS OF LABOUR PARTY POLICY: THE SCORECARD FOR 2015/2016.

Examples from cost analysis

1. The then Shadow Environment Secretary promised at the 2013 Labour Party Conference:

‘A One Nation Labour government will ban food from landfill’

(Mary Creagh, Speech to Labour Party conference 2013, 22 September 2013).

Treasury officials calculate that this would cost £477 million in 2015/16 because of the significant fall in Landfill Tax revenues that this policy would cause.

Labour have not said how they would pay for this promise – meaning they would have to borrow more.

2. Last year – and he repeated this in his speech in Salford today – Ed Miliband promised in his Party Conference speech:

‘our fourth national goal is that by 2025 as many young people will be leaving school or college to go on to an apprenticeship as currently go to university’

(Ed Miliband, Speech to Labour Party conference 2014, 23 September 2014).

Even assuming that this policy will not be fully delivered until 2025 – Treasury officials calculate that this would cost £710 million in 2015/16 alone.

Labour have not said how they would pay for this promise – meaning they would have to borrow more.

3. Labour’s Shadow Business Secretary Chuka Umunna has promised:

‘Under our plans, all apprenticeships should last a minimum of two years and should be level-three qualifications’

(Chuka Umunna, EEF Guest Blog, 28 February 2014).

Treasury officials calculate that this would cost £680 million in 2015/16.

Labour have not said how they would pay for this promise – meaning they would have to borrow more.

4. Labour’s Shadow Education Secretary Tristram Hunt has promised:

‘Under Labour, all teachers will have to become qualified, teachers will be given greater opportunities to further their career progression and development and, as in other high status professions, teachers will be regularly revalidated’

(Tristram Hunt, Labour Party press release, 14 January 2014).

Treasury officials calculate that this would cost £177 million in 2015-16.

Labour have not said how they would pay for this promise – meaning they would have to borrow more.