AUSTERITY OR AUSTERITY LITE?

It’s not much of a choice, especially when you consider that by polling day only 40% of the Con Dems cuts will have taken place. Before the Autumn Statement, Plaid warned that the Government’s spending plans for the next parliament would take us back to the 1930s if the proposed reductions in public spending were pushed through.

The Labour party understandably attacked the Tories for their plans to reduce spending on public services to levels not seen since the 1930s, at 35% as a share of GDP. Yet, what should alarm people is that the Labour parties’ economic plans are essentially the same. Labour’s plans would see spending on public services at roughly the same, 37% of GDP – reducing it to a level that we have not seen since the 1930s, a time before the creation of the NHS and when people left school at the age of 14.

If nothing else, this reveals that there is little or no difference between any of the larger Westminster parties, with Labour lumped to the Tories’ ideological plan to shrink the size of the state and intentionally hack at our public services. At the next Westminster general election, the real choice being offered the people of Wales is between the Westminster parties who all offer more austerity and more hardship, or Plaid Cymru - who, in the forthcoming hung parliament where every vote counts, will demand an end to austerity and fight for the need to invest.

Plaid Cymru has set out its plans to increase investment infrastructure by 1% of UK GDP annually. Institutions such as the International Monetary Fund and the Confederation of British Industry have noted that for every £1 invested it produces £2.50 - £3.00 in the real economy. This would be an investment of around £16 billion at a UK level, bringing £800 million to Wales to invest in schools, hospitals, and other works to improve the economy.

This investment would help us to tackle the deficit over a much longer period. Investment is the perfect antidote to the cosy Westminster Parties’ consensus, which seeks to inflict ever greater levels of austerity on our people. Austerity will ensure that places like Wales suffer as they seek to balance the books on the backs of the poor.