Rebecca Long-Bailey MP, Labour’s Shadow Treasury Minister, responding to today’s public sector finance figures from the ONS, which show that the deficit is £3.8bn larger than the OBR forecast and that public sector net debt has increased by £49.6bn to £1,596bn, said:

“The news that George Osborne’s deficit was even larger than thought in 2015-16 is another body blow for a Chancellor whose reputation for fiscal management is now in shreds.

“His recovery built on sand that has led to slower wages and growth forecasts than expected, so it’s no wonder he keeps missing his targets for reducing debt and deficit.

“Labour’s Fiscal Credibility Rule would take a different approach, in line with the advice of most macroeconomists, to boost growth and reduce debt over the course of a Parliament.”