Philip Hammond went on the attack yesterday over Labour’s economic credibility after Diane Abbott’s disastrous interview on police funding.
The chancellor claimed that giving Jeremy Corbyn the keys to No 10 would be “a chaotic and high risk gamble” that would lead to higher taxes, more borrowing and more debt. The Tories published a new document which alleged that there was a £45bn black hole in Labour’s economic plans which would detonate a tax and debt “bombshell” if the party took power.
Labour dismissed the allegation as “absolute lies”.
But Hammond said: “ Corbyn offers a chaotic and high risk gamble that would lead to higher taxes, more borrowing and more debt.” The Tories are seeking to stress that the election is a choice between Theresa May and Corbyn, while Labour has sought to shift the debate onto policy issues.
But this backfired on Tuesday when shadow home secretary Abbott gave a stumbling performance on LBC radio on how Labour would fund 10,000 more police officers, at one stage suggesting the scheme would cost £300,000 — which would mean them getting an annual salary of £30.
Shadow chancellor John McDonnell, yesterday sought to restore Labour’s economic standing after her blunder.
He stressed that he had a reputation as a “hard-nosed bureaucrat” and that he would be deciding spending in Labour’s manifesto and how it will be financed. He also denounced as “absolute lies” the Tory claim of a £45bn black hole.
He stressed that the police policy, costing up to £300mn a year, would be fully funded by reversing planned cuts in capital gains tax.
“Let me give this assurance to everyone. I’m the person who will determine, first of all, the levels of expenditure on each item that will be committed to in the manifesto,” he told BBC radio.
“I’m the person who will be identifying the funding source.”
McDonnell said middle and low earners would be protected from tax rises under Labour.