JEREMY CORBYN’S pledge to end austerity would cost taxpayers £33 billion, economic experts have warned – and that’s before he imposes his radical plans to nationalise key industries and wipe-out student debt.
It would end hopes of balancing the nation’s books by 2025 and keep the deficit at its current level of 2.4 per cent of GDP, the respected Institute for Fiscal Studies said.
And yesterday deputy PM Damian Green warned Mr Corbyn that Labour will face an electoral wipeout in the long-term if he continues to offer youngsters unaffordable spending promises – such as his latest vow to cancel £100 billion of student debts.
Standing in for Theresa May at Prime Minister’s Questions, he said: “Misleading students is a very dangerous thing to do. If they don’t believe me, ask the Liberal Democrats”.
IFS deputy chief Carl Emmerson said abandoning austerity would be “a very sharp change in direction” and warned that it would leave the Chancellor with little wriggle room to deal with economic bumps after Brexit.
But he said it was “an option in a way that it was not an option back in 2010”.
Mr Emmerson said: “We could choose to continue to run deficits of around the current level over the longer term.
“If the economy were to grow as expected this would be sufficient to see debt fall as a share of national income over the longer term.