Both Tories and Labour pledge lavish borrowing


McDonnell said in a speech that government debt would rise but a higher investment would boost public assets and strengthen the public sector.

In a speech in which he painted his plans as "responsible" in contrast to the bigger spending promises of the opposition Labour Party, he said debt as a share of economic output would be lower at the end of the next parliament than at the start.

"Our aim as a Labour government is to achieve what past Labour governments have aspired to: an irreversible shift in the balance of power and wealth in favour of working people", he said.

"That means change, means investment on a scale never seen before in this country, and certainly never seen before in the North and outside of London and the South East".

"To achieve that objective it also requires, therefore, an irreversible shift in the centre of gravity in political decision making as well as investment in this country from its location exclusively in London to be relocated to the North and regions and nations of our country".

However Mr Javid will say that Labour's plans would put at risk a "decade of recovery" under the Conservatives. So that when we invest in the infrastructure our country desperately needs, it's recognised both as a cost but also as a benefit.

'Yes, adding to the manager's debt, but additionally adding to the manager's sources and strengthening our public sector to take care of the future.

The Resolution Foundation report said such pledges could push government spending above 40% of national output - levels not seen in the United Kingdom for decades, although still below those in Germany or France - and that taxes would have to rise.

He vowed that the party would not let borrowing costs soar, promising a cap "in normal times" on debt servicing costs of 10% of Britain's tax take.

"They take us all for fools".

'On this at least there's nothing radical, just common sense'.

McDonnell is also set to announce £150 billion will be spent on a "Social Transformation Fund".

He said this would "begin the urgent task of repairing our social fabric that the Tories (Conservatives) have torn apart".

There would additionally be a National Transformation Fund unit of the Treasury beneath Labour, he talked about, adding that it'd be based exclusively mostly in the North.

Treasury ministerial meetings will no longer take place exclusively in the capital and ministers will have an office in the North as well as Whitehall.

With Britons due to vote on December 12, the main parties are drawing up battle lines: Prime Minister Boris Johnson says he alone can deliver Brexit, while Labour leader Jeremy Corbyn says only his policies offer real change. The centre of gravity, of political gravity, is intelligent some distance off from London.

"Power is coming home - back to the people".

Britain's two main parties promised billions of pounds of investment for hospitals, schools and infrastructure on Thursday as they seek to woo voters tired of austerity ahead of next month's election.