BLEAK BUDGET SHINES LIGHT ON LABOUR'S FAILURES - WELSH LIB DEMS

11.32.38am BST (GMT +0100) Mon 27th Apr 2009

Speaking after the Chancellor's Budget Statement, Liberal Democrat Shadow Secretary of State for Wales, Roger Williams MP, and Cardiff Central MP Jenny Willott have branded the statement as a "stark assessment of Labour's economic mismanagement", and have expressed their disappointment that the Government have once again failed to rebalance the tax system.

The Chancellor revealed that debt would soar to £175 billion this year, 12% of GDP.

He predicted growth of 1.25% next year and growth of 3.5% by 2011, far more optimistic than those outlined by the IMF.

Commenting, Roger Williams said:

"The figures being read out by Alistair Darling were extremely disturbing, but it would be difficult to assess that from his sunny assessment of the future.

"His predicted growth figures for 2010 and 2011 are flatly disputed by the IMF and most neutral observers. It is disappointing that even now the Government are still trying to spin their way out of their mistakes on the economy. People in Wales deserve to hear the truth about the grim economic situation.

"The Welsh Assembly Government will have to make huge cuts to their budget because Labour in Westminster have failed to keep a lid on exuberant credit and banking excesses. Wales is underfunded and it's hard to see how these cuts can be applied in a way that doesn't affect frontline services.

"In the circumstances, the Chancellor doesn't have much to play with in terms of public expenditure, but this is a stark assessment of Labour's economic mismanagement. These are Brown's chickens coming home to roost."

Commenting, Jenny Willott said:

"Despite the fact that their own VAT cut has been a monumental failure, the Government is still refusing to change course.

"Raising personal allowances will take four million people out of paying income tax altogether, and give those who most need it an extra £700 a year.

"The Chancellor says he's closing tax loopholes, but he's barely scratching the surface and crucially he hasn't put any money back in the pockets of those who need it most."