THE CONSERVATIVE PARTY'S CREDIBILITY DEFICIT

Today Labour published a new analysis of Conservative tax and spending promises. It shows that they have made promises of tax cuts and new spending worth nearly £29 billion - but have only identified just under £6.5 billion of savings to pay for them. This leaves them with a "credibility deficit" of over £22 billion.
In addition to this, matching our deficit target even one year faster would mean having to find a further £26 billion through cuts to public services or extra taxes.
When we published a list of Conservative tax and spending promises in January, it plunged the Conservative Party into disarray - David Cameron wobbled on his flagship policy of tax breaks for married couples and his party also broke key promises on policies such as NHS single rooms and extra prison places.
But they have also made new commitments, such as this week's promise to reverse the planned National Insurance rise - without setting out clear, credible savings to pay for them.
Alistair Darling MP, Labour's Chancellor of the Exchequer said:"In January, we brought together for the first time all the promises David Cameron and George Osborne had made."The challenge to them in January was to eliminate the entire ‘credibility gap' in their plans - before they could say anything meaningful about going further and tackling the deficit at all. The challenge was to eliminate their entire credibility gap. They failed."Today we have looked at this again, it leaves the Conservatives with a ‘credibility deficit' of £22 billion. It means they are now forced to find £22 billion in extra spending cuts or tax rises to deal with this, even before they have made any moves to cut the deficit faster than we are."So the challenge to David Cameron today is - stand up and tell people: which of these are promises you'll stand by - and ident ify the real cuts or tax increases that you'll do to afford them or be clear to people which further promises you are breaking today."If he fails to do so, the Tories will have no credibility left."
Peter Mandelson, Labour's Business Secretary said:"In the coming weeks we are going to focus relentlessly on these Tory plans. On the fact that money doesn't grow on trees. Tax cuts cannot be plucked out of thin air. And that, if you want to protect frontline services - as we do - they have to be paid for."The credibility of David Cameron and George Osborne is an important issue - for the public, for the markets and internationally."But even more important are the costs to the British people. The list of Conservative tax and spending promises that we have outlined today all have to be paid for by the public."
We have made our choices and set out our deficit reduction plan - halving the deficit over four years with fair tax rises and lower spending growth. We have also set out the tax rises that will be part of that plan - totalling £19 billion. They do not include a rise in VAT. As the Chancellor said today, he considered VAT but chose to raise NICs as the fair choice - protecting those earning under £20,000 and not affecting pensioners.
No Chancellor ever rules out future tax changes. But we are clear that we have no need to raise VAT to deliver our deficit reduction plan.
The Tories are the ones with a £22 billion credibility gap to fund, even before they start cutting the deficit. It's hard to see how they could deliver additional resources on that scale without raising VAT and making further large cuts in public spending.