Tuesday, 28 April 2015

GDP FIGURES SHOW AUSTERITY HAS FAILED

The latest GDP figures show the Conservative – Liberal Democrat Coalition government’s austerity experiment has failed. Plaid Cymru's plans for modest growth in departmental spending of 0.5 per cent in addition to an increase in infrastructure spend would lead to a balanced economy and healthier public finances.

Leanne Wood AM/AC Party of Wales leader said:

“The latest GDP figures reflect the fact that the economy has been choked by the austerity experiment. This has been the slowest post-recession recovery in living memory resulting in an imbalanced economy and missed fiscal targets.

"The UK is the only major economy where the gap between rich and poor is widening. The poorest ten per cent have borne the brunt for harsh cuts. Wages in parts of Wales are ten times lower per head than parts of inner London and people are stuck in under-employment and zero hours contracts.

"Austerity is a choice. We cannot have healthy public finances without first securing a balanced economy. That is why Plaid Cymru advocates breathing space for businesses and communities. Modestly increasing government investment in services and improving infrastructure would provide the basis for a balanced economy and job opportunities across the UK.

"For every pound spent on infrastructure, a further three pounds of activity is generated in the economy. For every percentage increase in GDP, around £700 million is added to the tax take.

"Bringing down the deficit through investment is the only responsible approach. People in Wales have the option of rejecting further counter-productive cuts and backing investment with Plaid Cymru at this election. It's time for a humane economic policy that protects our treasured public services and delivers a climate for businesses to flourish."

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