Responding to yesterday’s Statement by the Minister for Finance and Local Government ‘Response to the UK Government Autumn Statement and Economic and Fiscal Forecasts’, North Wales MS Mark Isherwood highlighted that the UK is not the only Country facing a cost-of-living crisis and told Welsh Minister that “only a very silly-billy” would “claim that the current cost-of-living crisis was made in Westminster”.
Speaking in the Senedd Chamber, he said:
“Given that the March 2010 Budget Statement by the last UK Labour Chancellor, Alistair Darling, stated that the scale of the deficit meant the UK didn't have enough money - defined as austerity - and he was therefore cutting borrowing, spending and growth forecasts; given that current inflation rates are higher in 23 European countries, and 16 out of 27 EU member states, than in the UK; given that the International Monetary Fund has forecast that half of the eurozone countries, at least, are heading for recession; and given that the UK Central Bank interest rates are lower than in many major economies, including the US and Canada, wouldn't only a very Silly-Billy claim that the current cost-of-living crisis was made in Westminster?”
In her response, the Minister, Rebecca Evans MS, insisted that “the mini-budget” is to blame for the crisis.
Speaking after the meeting, Mr Isherwood said:
“If this Welsh Government is right to lay blame for the current cost of living crisis at the UK Government’s door, why is there a worsening international cost-of-living crisis and why is economic momentum slowing down across Europe, Asia and America?
“Further, how can ‘Liz Truss’s disastrous mini-budget’ be responsible for £30bn of the ‘fiscal hole’ addressed by Chancellor Jeremy Hunt’s Autumn Statement, when this ‘fiscal hole’ does not represent the current budgetary deficit or public debt level - and is instead the gap between the projected public finances and the Chancellor’s goal of debt falling as a share of GDP within five years, and when interest payments on UK Government borrowing tumbled after Jeremy Hunt reversed Liz Truss’s mini budget?”