Natalie Bennett: This Spending Review doesn't add up, in economic, social or environmental terms

25 November 2015

Natalie Bennett: 'Barely featuring in this Spending Review is a recognition that our economic prosperity relies on a healthy natural environment'

Molly Scott Cato MEP: 'Osborne’s harsh austerity agenda has failed even under its own terms'

Responding to the Spending Review, Natalie Bennett, Green Party Leader, slammed the Conservative government’s ideologically-driven decision to double-down on their austerity economic programme, which has already caused devastation to our economy, environment and communities.

"This Spending Review doesn't add up, in economic, social or environmental terms. It is becoming clearer by the day that Chancellor George Osborne's plans aren't working even in his own terms and are causing massive destruction to the foundations of British life - our communities, our public services, our small businesses, our natural environment.

The Chancellor has been forced by the House of Lords to abandon his cuts to tax credit, but he is still reducing both in-work and out-of-work benefits. Today he has put yet more barriers in the way of the millions of households for whom the highest possible aspiration can be keeping their heads above water.

"The beneficiaries of this Spending Review will be large private sector firms, such as housebuilders. The victims will be the low-paid, the unemployed, the insecurely employed and disabled, and the young.

“Barely featuring in this Spending Review is a recognition that our economic prosperity relies on a healthy natural environment and that unpolluted air, clean water, local green space and healthy soil are crucial for our economy."  

“The further cuts to local authority spending are nothing short of disastrous. They will devastate essential services and communities across Britain. The Green Party oppose the hollowing out of council services and this is why Caroline Lucas, Green MP for Brighton Pavilion, Baroness Jenny Jones and concillors handed in a letter on behalf of all 168 Green councillors opposing these cuts to Number 10 Downing Street on 18 November.”

Molly Scott Cato MEP, the Party’s Finance Spokesperson, said: 

The callous and counter-productive policy of austerity is not delivering the deficit and debt cuts Osborne promised. It is clear he has failed even under his own terms. While the deficit may be reducing, national debt continues to rise.

“Rather than a further £12bn in cuts the Chancellor could instead be seeking to plug the gap with taxation measures that not only spare the most vulnerable from more savage cuts but also tackle Europe’s carbon emissions too. As world leaders meet in Paris to discuss keeping the climate below two degrees of warming, now would be a good time for the Chancellor to be working cooperatively with our European partners to end the tax subsidies enjoyed by the aviation industry, estimated to be at least £10bn a year (1)."

Ends

1) Based on http://www.aef.org.uk/2014/11/06/air-passenger-duty-what-is-it-good-for/ footnote: A 2013 report by CE Delft estimated the revenue that could be raised if aviation across Europe paid VAT (£7 billion across Europe) and fuel duty (£32 billion if introduced at the same level as the average fuel duty for petrol and diesel across Europe). This would raise a total of £39 billion across Europe. As according to Eurocontrol, UK aviation makes up around a quarter of EU passengers, in approximate terms £10 billion would be raised in the UK.  A study in 2005 suggested that £10 billion could be raised in the UK, supported by modelling by the UK treasury.

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