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You can find the current article at its original source at https://www.theguardian.com/politics/2017/nov/16/end-austerity-public-services-john-mcdonnell-labour-budget
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| End austerity in public services, John McDonnell tells chancellor | End austerity in public services, John McDonnell tells chancellor |
| (35 minutes later) | |
| The shadow chancellor, John McDonnell, has demanded an emergency budget to end austerity in public services. | The shadow chancellor, John McDonnell, has demanded an emergency budget to end austerity in public services. |
| McDonnell said he feared next week’s budget would not be ambitious enough to tackle the scale of funding shortages in housing, health, and law and order. | McDonnell said he feared next week’s budget would not be ambitious enough to tackle the scale of funding shortages in housing, health, and law and order. |
| “My worry is that this budget will be more about saving Theresa May’s job and Philip Hammond’s job rather than addressing the real needs of our country,” he told BBC Breakfast on Thursday. | |
| Citing warnings from headteachers, police chiefs and the head of the NHS, he said: “We need an emergency budget to tackle the very real emergencies our public services are having to address.” | Citing warnings from headteachers, police chiefs and the head of the NHS, he said: “We need an emergency budget to tackle the very real emergencies our public services are having to address.” |
| Speaking to Radio 4’s Today programme, McDonnell confirmed Labour’s manifesto commitment to a £17bn annual increase in public spending, paid for by tax rises for the better off and a reversal of cuts to corporation tax. | Speaking to Radio 4’s Today programme, McDonnell confirmed Labour’s manifesto commitment to a £17bn annual increase in public spending, paid for by tax rises for the better off and a reversal of cuts to corporation tax. |
| But he also suggested Labour would increase its commitment to raise an additional £6.5bn by tackling tax avoidance, in the wake of the Paradise Papers revelations. | But he also suggested Labour would increase its commitment to raise an additional £6.5bn by tackling tax avoidance, in the wake of the Paradise Papers revelations. |
| He said: “I cut that down to £6.5bn to give it a bit of leeway; now we know from the Paradise Papers it must be significantly more than that. Even the government now is going to have to address this, because people will feel that unfairness of having their public services cut whilst this tax avoidance is going on.” | He said: “I cut that down to £6.5bn to give it a bit of leeway; now we know from the Paradise Papers it must be significantly more than that. Even the government now is going to have to address this, because people will feel that unfairness of having their public services cut whilst this tax avoidance is going on.” |
| McDonnell ruled out setting aside funds to cushion the economic impact of Brexit. “We don’t think we need to set money aside because we can get a good deal, which will maintain tariff-free access, allow our economy to grow and work in a new collaborative relationship with our European partners,” he said. | McDonnell ruled out setting aside funds to cushion the economic impact of Brexit. “We don’t think we need to set money aside because we can get a good deal, which will maintain tariff-free access, allow our economy to grow and work in a new collaborative relationship with our European partners,” he said. |
| He refused to be drawn on whether Labour would pay a €60bn (£54bn) divorce bill to leave the EU. “How can anyone comment on this when the government won’t publish the information upon which we can take considered and rational decision?” he said. | He refused to be drawn on whether Labour would pay a €60bn (£54bn) divorce bill to leave the EU. “How can anyone comment on this when the government won’t publish the information upon which we can take considered and rational decision?” he said. |
| Challenged on a Labour conference suggestion that he would introduce capital controls to stop a run on the pound if Labour came to power, he said: “There is never going to be a run on the pound. Business leaders are coming to me for certainty and the one thing they are getting from us is openness and transparency about what we want to do, and they are welcoming it.” | |
| Speaking to Sky News, McDonnell said business leaders and some Conservatives now accepted that austerity was damaging the economy. “I think there is a growing consensus now that austerity has to end. We have to invest for the future,” he said. | Speaking to Sky News, McDonnell said business leaders and some Conservatives now accepted that austerity was damaging the economy. “I think there is a growing consensus now that austerity has to end. We have to invest for the future,” he said. |
| “Our services are facing an emergency on the ground, so this should be an emergency budget that concentrates on investing in our public services. Lifting the pay cap because things are so serious now.” | “Our services are facing an emergency on the ground, so this should be an emergency budget that concentrates on investing in our public services. Lifting the pay cap because things are so serious now.” |
| Speaking on BBC Breakfast, McDonnell repeated warnings of the scale of the crises facing public sector leaders. | Speaking on BBC Breakfast, McDonnell repeated warnings of the scale of the crises facing public sector leaders. |
| “We have had some real messages from the frontline of our public services over the last few weeks: 5,000 headteachers writing to the prime minister saying we’ve got to stop the cuts in our education – they are having to send out letters to parents asking for donations; we’ve had the chief executive of the NHS [setting out] the scale of the crisis that we have in our NHS; and … the person who is responsible for advising the government on terrorism [is] saying that we can’t combat terrorism if we have this level of police cuts.” | “We have had some real messages from the frontline of our public services over the last few weeks: 5,000 headteachers writing to the prime minister saying we’ve got to stop the cuts in our education – they are having to send out letters to parents asking for donations; we’ve had the chief executive of the NHS [setting out] the scale of the crisis that we have in our NHS; and … the person who is responsible for advising the government on terrorism [is] saying that we can’t combat terrorism if we have this level of police cuts.” |
| Later on Thursday, the government will set out measures to help tackle the housing crisis by removing housing association debt from the government’s balance sheet. | Later on Thursday, the government will set out measures to help tackle the housing crisis by removing housing association debt from the government’s balance sheet. |
| McDonnell dismissed this as “creative accountancy”, saying: “What we need is a large-scale housing programme led by local councils. We need a million new houses under the next period of government [including] 100,000 affordable houses, social housing, each year. We think we can build that on the basis of bringing together local authorities and letting them have the powers now to get out there and start building again.” | McDonnell dismissed this as “creative accountancy”, saying: “What we need is a large-scale housing programme led by local councils. We need a million new houses under the next period of government [including] 100,000 affordable houses, social housing, each year. We think we can build that on the basis of bringing together local authorities and letting them have the powers now to get out there and start building again.” |