Chancellor's Spin Makes His Record Look Like Failure - Cable

5.53.50pm GMT Mon 5th Dec 2005

Responding in the House of Commons to the Chancellor's Pre-Budget Report, Vince Cable MP, Liberal Democrat Shadow Chancellor will say: "The Chancellor's reliance on spin and exaggeration means a respectable economic growth performance looks like a failure.

"As the Chancellor well knows the origins of this slowdown are domestic, not foreign and oil based as he often claims.

"Debt servicing as a share of income is now very close to the peak of 20% when the Conservatives presided over a meltdown in family finances. There has been a 50% rise in repossessions during the last year, coupled with record levels of personal bankruptcies.

"Business investment growth is under half the Treasury estimate, manufacturing output is declining, and R&D funding has fallen despite the £1 billion a year of taxpayers' money the Chancellor has thrown at it."

On affordable housing, Mr Cable will add:

"If his priority is affordable housing why is the Chancellor using

£2 billion or more to subsidise well off people investing in second homes under the SIPPS scheme."

On fairer taxation, Vince Cable will go on to say:

"The Chancellor and the Liberal Democrats agree on the need for a progressive consensus to achieve fairness in taxation and income distribution. He needs to explain why income distribution is now no better than when Labour came to power, and why wealth distribution is worse.

"He needs to explain why he still clings to his belief in means testing despite creation of disincentives for poorer pensioners and workers to save and work"