Cutting £11.5 billion cannot solve a deficit of £118.5 billion

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Osborne is going to explain how he will find £11.5 billion of cuts today. He will pretend this will solve the problems within the so-called structural deficit.

The total deficit last year was £118.5 billion.

I hope someone will ask how £11.5 billion of cuts will solve a £118.5 billion deficit. I am sure Osborne will not be able to do so because the fact is that these cuts, and all that preceded and will follow them, cannot solve this issue. Only creating full employment - where the people of the UK return to paying tax and claiming fewer benefits - will solve this issue. And that will require borrowing to get the process going - and serious borrowing at that. But as the IMF's work on multipliers has shown, such borrowing can pay for itself.

This is the only way forward. And no one on the front benches is brave enough to say it. That's why we face decades of stagnation.