Yesterday we learnt that the Tory-led government’s reckless economic plan has failed. The government will borrow a staggering £158 billion more than they planned a year ago. Borrowing is up because the economy has stalled, unemployment is set to increase further while inflation is hitting families and businesses.

As the economy flatlined, the chancellor blamed the snow, then he blamed the royal wedding and now he blames the eurozone. But it’s time the chancellor stood up and took responsibility for his own economic gamble that cut spending and raised taxes too far and too fast, choking off the recovery. It’s time he stopped his excuses and took action to get jobs and growth on track.

Of course we have to get the deficit down. But Osborne is borrowing for failure – higher unemployment and a bigger benefits bill doesn’t make economic sense. With unemployment rising we end up paying more out in benefits and with more businesses failing we get less in in taxes. That’s why George Osborne is going to borrow billions more than he planned.

This government is out of touch with the real challenges facing families, pensioners and businesses across Britain. They’re so out of touch they have decided to hit families hard by cutting tax credits, while refusing to repeat the bank bonus tax as Labour has called for.

Labour are showing the chancellor that there is a better way: Labour’s five-point plan for jobs and growth includes a temporary VAT cut to put an extra £450 in the pockets of the average family and a tax on bank bonuses to fund 100,000 jobs for young people. The truth is we need to get our economy moving again, create jobs and build a better economy for the future to get the deficit down. A fairer and stronger economy for families, pensioners and businesses across Britain.

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Rachel Reeves MP is shadow chief secretary to the Treasury

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Photo: Ewan McIntosh