Sajid Javid today claimed Labor’s spending plans would cause an ‘economic crisis within months’ ofJeremy Corbyngetting into power.
The Tories have published an analysis of the cost of Labor’s policies and estimated the bill for Britain would be £ 1.2 trillion.
Labor has rubbished the number but Mr Javid defended the calculations this morning as he said: ‘This is the true cost of Corbyn’s Labor. These are the numbers that John McDonnell did not want you to see. ‘
Mr Javid said Mr Corbyn’s plans would result in ‘eye-watering levels of spending’.
He added: ‘£ 1.2 trillion. It will be absolutely reckless and will leave this country with an economic crisis within months, not years, within months. ‘
Meanwhile, Mr Javid refused to be drawn on whether the Tories will go ahead with numerous policies – like income tax cuts for higher earners – which have previously been floated by Boris Johnson and senior ministers.
Mr Javid said people would have to wait for the Conservative Party’s general election manifesto and added: ‘I’m not going to get into individual policies today.’
The Tories have outlined numerous big money policies of their own but Mr Javid declined to set out their total cost.
Asked on the BBC’s Andrew Marr Show if higher taxes would be required to allow the Tories to pay for proposed additional public spending, Mr Javid replied: ‘No, not at all.’
The Tories tried to kick their election campaign up a gear overnight as they accused Mr Corbyn of plotting to land Britain with a bill equivalent to an extra £ 43, 408 for every household in the country.
The astonishing figure, based on the additional cost of Labor’s policies over a five-year Parliament, is contained in a Tory dossier produced despite furious objections from shadow chancellor Mr McDonnell over the apparent use of civil servants in its creation.
Sajid Javid, pictured during an appearance on the BBC’s Andrew Marr Show today, warned against Labor’s spending plans
Mr Javid has warned the UK ‘simply cannot afford Corbyn’s spending spree that would saddle our children with huge amounts of debt’
John McDonnell confirms Universal Basic Income pilot scheme will be included in Labor manifesto
John McDonnell, the shadow chancellor, said plans to test the waters for a major overhaul of the benefits system will be included in Labor’s 2019 election manifesto.
Labor has previously suggested that it would run a pilot on rolling out Universal Basic Income if it wins power.
Universal Basic Income would see current means-tested benefits replaced with weekly or monthly payments to everyone.
Pressed on whether it was going to be in Laboror’s new manifesto he told The Independent: ‘Yeah. Well, the Clause V meeting is what determines the final manifesto. I’ll be submitting into the draft for consideration by Clause V that we have a pilot. ‘
Critics believe a Universal Basic Income system would be much more expensive than the current welfare system.
The unveiling of the full cost of Labor’s plans comes as Tory HQ tried to get onto the front foot after its campaign suffered numerous setbacks after its official launch last week.
Mr Javid said overnight that Mr Corbyn’s spending plans would cost the country an extra £ 650 million a day, or almost £ 5 billion a week, and push total government spending up by 30 per cent.
The £ 1.2 trillion figure is more than the GDP of Denmark, Ireland and Austria combined. Such a sum would fund the NHS for more than nine years.
Labor’s spending commitments include £ 196 billion for renationalising rail, water and postal services, £ 7 billion for free bus travel for the under 25 S, £ 30 billion for home insulation and refurbishments and £ 85 billion to institute a four-day working week, according to the 35 – page Tory analysis.
The Chancellor said the Tories would set out the full costs of their policies during the course of the election campaign.
‘With our plans, because they are properly costed, and by the way – whether it’s a tax pledge or anything else – we will be clear about how we will be funding that and that will be absolutely inside our fiscal rules, ‘he said.
‘We’ll be able to show people that we can both have tax cuts and have spending on what I call the people’s priority, on the NHS, on crime, on schools, and we can **** invest in infrastructure for the future. ‘
Mr Javid said he believes in low taxes and that people should’ keep more of their own money ‘.
Business minister Kwasi Kwarteng echoed Mr Javid this morning as he said that Labor’s spending plans were ‘reckless’.
He told Sky’s Sophy Ridge On Sunday:’ It is absolutely right that the public know that Labor’s plans are reckless and unaffordable. ‘
However, he would not be drawn on the total value of the Tories’ spending plans.
‘I’m not going to bandy around figures,’ he said. ‘It’s absolutely right for us to say this is what the opposition are saying and this is how much it is going to cost.’
The government had planned to publish a Treasury costing of Labor’s policies with civil servants having been tasked with doing the work.
Mr McDonnell said it was an abuse of power for Tory leaders to use Treasury officials to produce the figures and Cabinet Secretary Sir Mark Sedwill blocked publication.
But the Tories appear to have published their own version of the analysis in a move which sparked further Labor fury.
Mr Johnson has unveiled generous spending commitments on the NHS, the police and benefits which have led to arguments behind the scenes over the extent to which the Conservatives should relax spending rules.
Mr Javid is among those warning that the party should not put at risk its hard-won reputation for competent economic management.
Allies of Jeremy Corbyn, pictured attending the National Service of Remembrance at The Cenotaph today, dismissed the Tories’ calculations
Mr Javid said last night: ‘The true cost of Corbyn is a staggering £ 1.2 trillion. Now is the time for responsible investment not reckless borrowing.
‘We simply cannot afford Corbyn’s spending spree that would saddle our children with huge amounts of debt and undo all the hard work of the British people in recent years.’
But Mr McDonnell rubbished the Tory claims as he said: ‘This ludicrous piece of Tory fake news is an incompetent mish-mash of debunked estimates and bad maths cooked up because they know Labor’s plans for real change are popular.
‘Labor will tax the rich to pay for things everyone needs and deserves, like decent housing, healthcare and support for our children.’
Shadow communities secretary Andrew Gwynne, who is in charge of coordinating Labor’s election campaign, said the actual cost of the party’s plans was ‘still being finalized’.
‘We will have a fully costed manifesto in due course,’ he told the BBC’s Andrew Marr Show.