Tories say Ed Balls’ borrowing announcement would lead to higher mortgages

This morning the Shadow Chancellor wrote in the Guardian: "Labour is advocating a balanced plan on growth, jobs and living standards: bringing forward £10bn of infrastructure investment now, as the IMF has demanded, which could build 400,000 affordable homes and create 600,000 jobs; a compulsory jobs guarantee for young people and the long-term unemployed, which will also help get the benefits bill down; and fairer choices on deficit reduction, like cutting the winter fuel allowance for the richest pensioners, and boosting living standards with a 10p starting rate of tax for middle- and low-income families."

Following Ed Balls’ comment, a Conservative Party spokesman said: "Even in these tough times as we make difficult decisions to cut the deficit, Conservatives are helping hardworking people by cutting income tax by an average £705 and taking 2.7 million of the lowest paid out of income tax altogether. But Ed Balls is today alone calling for £18 billion more spending, more borrowing and more debt. That's the same old Labour policy that got us into this mess in the first place. And it's hardworking people who would pay the price with higher mortgage rates and higher bills."