Labour makes election pledge of billions toward public services
Labour shadow chancellor, John McDonnell, has said that the party will provide £150 billion for schools, hospitals and housing should they win the election, during a speech in Liverpool.
The funds, which come on top of existing spending pledges, will be financed through borrowing and will amount to investment “on a scale never before seen” in the UK, especially “in the north and outside of London and the south-east”.
McDonnell has also declared his intent to move Treasury staff out of the capital, establishing a base in the north of England, in an “irreversible shift” of wealth to working classes outside of the south-east.
The shadow chancellor and Labour leader Jeremy Corbyn are also planning a rally in Manchester on Thursday evening, to which they are expected to travel on their new campaign bus for the first time.
Shadow business secretary Rebecca Long-Bailey added that the investment plans will increase economic growth and boost tax revenue, adding that school and hospital upgrades could come in the “early days” of Labour taking power.
However, incumbent chancellor Sajid Javid called the pledges “fantasy economics”, ahead of a speech where he will outline the Conservative party’s plans for investing in education, technology and infrastructure which will “unleash Britain’s potential”.
Javid, who is due to speak in Manchester himself, is expected to label both McDonnell and Corbyn as akin to the “anti-vaxxers of economic policy”.
In his speech, he will say: “Not only did they reject the treatment needed to heal our economy and get the deficit down by four-fifths, they now want to take every step imaginable to make the country sick and unhealthy again.”
Javid will also emphasise the economic importance of delivering Brexit in his speech.
The chancellor will say: “Jeremy Corbyn's Labour would damage our economy by wasting 2020 having another two referendums on EU membership and Scottish independence, leaving business facing even more uncertainty.”