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| Version 0 | Version 1 |
|---|---|
| George Osborne urges Labour rebellion on fiscal charter vote | George Osborne urges Labour rebellion on fiscal charter vote |
| (about 7 hours later) | |
| Chancellor George Osborne is urging "moderate" Labour MPs to rebel against their leadership and support his fiscal charter in a vote later. | Chancellor George Osborne is urging "moderate" Labour MPs to rebel against their leadership and support his fiscal charter in a vote later. |
| His appeal follows a fallout within Labour after shadow chancellor John McDonnell said the party would no longer support the proposal. | His appeal follows a fallout within Labour after shadow chancellor John McDonnell said the party would no longer support the proposal. |
| The charter would force future governments to run a budget surplus. | The charter would force future governments to run a budget surplus. |
| Mr McDonnell said he would propose his own charter, but Mr Osborne said Labour MPs should vote with the government. | Mr McDonnell said he would propose his own charter, but Mr Osborne said Labour MPs should vote with the government. |
| At the very least, Labour MPs should abstain in the vote, the chancellor added. | At the very least, Labour MPs should abstain in the vote, the chancellor added. |
| 'New economic paradigm' | 'New economic paradigm' |
| A motion seeking approval for the Charter for Budget Responsibility will be put before the House of Commons later on Wednesday. | A motion seeking approval for the Charter for Budget Responsibility will be put before the House of Commons later on Wednesday. |
| Having previously said Labour would give it its backing, Mr McDonnell informed a stormy meeting of Labour MPs on Monday that he had changed his mind - and told the party to oppose it. | Having previously said Labour would give it its backing, Mr McDonnell informed a stormy meeting of Labour MPs on Monday that he had changed his mind - and told the party to oppose it. |
| Explaining his decision the following day, he insisted he had changed his mind on tactics not economic policy, and pledged to start a "new economic paradigm". | |
| Austerity battle | Austerity battle |
| Mr Osborne said Labour's U-turn "confirmed they want to go on borrowing forever - loading debts onto our children that they can never hope to repay". | Mr Osborne said Labour's U-turn "confirmed they want to go on borrowing forever - loading debts onto our children that they can never hope to repay". |
| "This is not socialist compassion - it's economic cruelty," he warned, claiming that "unsustainable deficits" hurt the poorest in society most. | "This is not socialist compassion - it's economic cruelty," he warned, claiming that "unsustainable deficits" hurt the poorest in society most. |
| He said the new fiscal rule would commit governments to "acting responsibly" and keeping the public finances in surplus "during normal economic times". | He said the new fiscal rule would commit governments to "acting responsibly" and keeping the public finances in surplus "during normal economic times". |
| "So today, with Labour's economic policy in obvious chaos, I call on all moderate, progressive Labour MPs to defy their leadership and join with us to vote for economic sanity. | "So today, with Labour's economic policy in obvious chaos, I call on all moderate, progressive Labour MPs to defy their leadership and join with us to vote for economic sanity. |
| "Failing that, they should at least follow the advice of the former shadow chancellor and abstain." | "Failing that, they should at least follow the advice of the former shadow chancellor and abstain." |
| The charter would legally prevent future governments from spending more than they receive in tax revenue when the economy is growing. | The charter would legally prevent future governments from spending more than they receive in tax revenue when the economy is growing. |
| The proposal commits the government to keep debt falling as a share of GDP each year and achieve a budget surplus by 2019-20. Governments will then be required to ensure there is a surplus in "normal times". | The proposal commits the government to keep debt falling as a share of GDP each year and achieve a budget surplus by 2019-20. Governments will then be required to ensure there is a surplus in "normal times". |