PBR 09: Labour has lost "moral authority" to govern, claims Osborne

The Labour government ducked tough spending choices in its pre-Budget report and has lost the “moral authority” to govern, the shadow chancellor George Osborne claimed.

In a punchy response to Chancellor Alistair Darling’s pre-Budget report – the last before a general election next year – Osborne argued that the PBR had failed three crucial tests: to restore confidence in the UK economy; reveal a plan to cut the record deficit; and create jobs and growth again.

“As the debts have got bigger the government’s response has got smaller,” said Osborne.

He said that the Chancellor’s announcement to increase the standard national insurance rate by 0.5%, in addition to 0.5% rise announced in the last Budget, sent the wrong signal to hard-working families who wanted to improve their lives.

Osborne lambasted previous claims by Prime Minister Gordon Brown and Darling that the Labour government had abolished “boom and bust”, and that the British economy was better placed than other economies to weather the global recession.

“No one will ever believe a word you say on the economy again,” Osborne said. “If you keep on spending more and more you run out of money”