The shadow chancellor was appointed by Corbyn on a clear anti-austerity mandate, but had agreed to back Osborne’s plans for a budget surplus at the end of September.
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George Osborne’s new charter commits the Government to running an overall budget surplus by 2019 and every year from then on in “normal” times.
Most Labour MPs believe that George Osborne’s fiscal charter is austerity-max madness that will bring untold hardship.
He added: “To go from one extreme to the other is wrong in economic terms but also it sends the wrong message to the general public as well”.
McDonnell, making his first appearance on the frontbench after 20 years in parliament, startled MPs by admitting he was embarrassed that he had reversed his two-week-old plan to tell Labour MPs to vote for Osborne’s charter for budget responsibility.
“Let me address the U-turn”.
The outburst by Exeter MP Ben Bradshaw follows a meeting of the Parliamentary Labour Party, during which several members reportedly stormed out after a “heated” debate.
Labour MP John Mann, who sits on the Treasury Select Committee, warned the “pernicious” Charter was a “trap to try and entice the Labour Party”.
Mr McDonnell also questioned the true goal of the fiscal charter.
The Guardian reported that Mr Benn’s article was written following a meeting with Mr Corbyn and other senior shadow ministers on Tuesday, following which the leader released a statement saying: “I met with shadow cabinet colleagues today and Hilary Benn is setting out the position”. It’s not the richest in society who pay the price, it is the poorest in society and it is the most progressive thing a government can do to run a sound fiscal policy and provide financial stability to the working people of this country.
But Morning Star campaigns manager Steve Sweeney, one of the organisers of the People’s Assembly week of action against the Tories in Manchester, said: “Mr Crabb’s speech to conference shows that the Tories have been rattled by the demonstrations and protests that have taken place this week”.
Mr Woodcock accused Ms Abbott of behaving like an “internet troll”.
And he insisted Labour had reached a position where they supported “borrowing forever”.
A few 16 MPs are thought to have been away from the lobbies with permission – but they have not yet been identified by Labour.
“It is unarguable that no modern party leader can win an election if behind in the polls on economic competence”.
Mr. Osborne sought to seize on the turmoil in the opposition party and told Labour lawmakers to rebel against their leadership and vote in favor of the proposal.
Mocking his opposite number during tonight’s 90-minute debate, Mr Osborne said: “It is not a political gimmick to have sound public finances”.
Shadow energy minister Clive Lewis is surely correct to suggest that Labour backbenchers whinging loudly for the benefit of the anti-Labour media are merely showing that “they are unhappy with the leadership”.
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“This is promising news, but its disgraceful there has had to be any doubt that the Labour party would oppose Tory cuts, and it is astonishing that they were ever considering voting for the charter”.
