Earlier today, Chancellor Rachel Reeves announced £39billion of spending for housing, extra defence spending, and 3 per cent a year for the NHS after inflation.
The chancellor also said she’s rejecting “austerity” and confirmed total departmental spending will grow by 2.3 per cent over inflation per year.
However, Thirsk and Malton Conservative MP Kevin Hollinrake said the Chancellor had not answered the big question of “where is the money coming from”.
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The former business secretary under the Sunak government said extra government spending announced last autumn, plus today’s extra spending, would mean £400bn of extra government spending over this parliament.
Half would have to come from tax rises, he said, the rest from borrowing, and would have to be paid back in the end.
“The taxpayer would be picking up the tab,” Mr Hollinrake continued.
The MP, who is now shadow housing secretary, welcomed the extra money for housing, but questioned how the extra homes would be delivered.
He feared cuts in other departments, such as in Defra, which would affect farmers, and schemes to improve biodiversity and environmental habitats.
Mr Hollinrake added: “Basically, this is typical, high borrowing, high tax, high spending socialism.”
The Conservative also repeated his comments about Labour, who argued it was able to U-turn over the Winter Fuel Allowance by saying the economy was in a better position due to measures undertaken by Chancellor Reeves last Autumn,
Mr Hollinrake said every economic indicator was now worse than then and government finances had now worsened.
Inflation was higher, unemployment was higher, government debt was higher and growth forecasts have been marked down.
“In every economic context, the situation is much worse than it was, he added.
