By Tim Montgomerie
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Conservative HQ issued a new dossier overnight that argues that Labour frontbenchers have been making reckless spending commitments that would add £326 billion to the national debt over the next five years compared to the Government’s plans.
Adding that level of borrowing to Britain's existing borrowings CCHQ suggests that we could be in a similar plight to nations like Spain and Italy with much higher interest rates. Higher interest rates could, it calculates, produce higher mortgage payments for the average family of £5,000.
Chloe Smith, Economic Secretary to the Treasury (now on Twitter), commented:
“This Government’s credible plan to clear up Labour’s mess and live within its means has ensured Britain is a safe haven in the global debt storm. But Labour would abandon this plan with billions and billions of more spending, more borrowing and more debt which would put us back in the firing line with Italy and Spain. This could risk putting up a family’s mortgage interest bill by £5,000 per year. With the global debt crisis getting worse every day, the Government’s plan to deal with our debts is even more important than ever, and Labour’s plan for more spending, more borrowing and more debt is even less credible. It shows that Ed Miliband and Ed Balls have learnt nothing from when they were in government and why Labour must never be trusted with our economy ever again.”