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Evening Standard
Evening Standard
Politics

John McDonnell taunts Phillip Hammond over austerity and tells Chancellor to 'stump up the cash'

John McDonnell, pictured earlier this month during a rally of striking fast food workers in Leicester Square, will call for 'large-scale action to end austerity' (Picture: Jack Taylor/Getty Images)

Labour’s John McDonnell will call for Chancellor Philip Hammond to “stump up the cash” and admit Tory austerity has failed.

In a speech on Thursday, shadow chancellor Mr McDonnell will urge Mr Hammond to take “large-scale action to end austerity".

Mr McDonnell is pressuring the government after Theresa May used her Conservative Party conference speech to declare: “Austerity is over.”

He will say Mr Hammond needs to begin his Budget statement by acknowledging Tory policies since coming into power in 2010 have failed.

Phillip Hammond, pictured in Downing Street last week, will give his Budget speech on Monday (Neil Hall/EPA)

"The Tory strategy,” Mr McDonnell will declare, "has created a low-wage, low-investment and low-productivity economy unfit to meet the two key challenges of our era: the need for a fourth industrial revolution and climate change."

He will warn that with a looming NHS winter crisis, a £2.5 billion "funding gap" in social care and benefit cuts leaving some families £200-a-month worse off, Mr Hammond needs to take significant action to repair the damage.

"There needs to be an acknowledgement of the scale of the hardship eight years of Tory austerity has inflicted on our people and our communities.

John McDonnell: 'Our schools, councils and social care system are crying out for investment' (Will Oliver/EPA)

"We need to see large-scale action in this Budget to end austerity, not some vague promises for the future or a few financial conjuring tricks.

"Our schools, councils and social care system are crying out for investment. If austerity is really over, it is time for Philip Hammond to stump up the cash."

Treasury chief secretary Liz Truss responded: "Since the Labour Party wrecked our economy, we've got the deficit down while investing record amounts in public services and keeping taxes low.

"Labour's plans to spend £1,000 billion and make business the 'enemy' would crash the economy all over again, and just like last time working people would pay the price."

Reporting by Press Association.

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