Chancellor: Labour's Sums Simply Don't Add up

17 May 2017, 10:13 | Updated: 17 May 2017, 10:23

Philip Hammond

The Chancellor has told LBC there is a £58 billion black hole in Labour's manifesto spending promises.

Jeremy Corbyn says the plans he unveiled in the Labour manifesto are fully costed.

But Philip Hammond says analysis shows many unfunded commitments.

Speaking to Nick Ferrari, he said: "There's a £58 billionblack hole in the numbers. £105 billionof spending pledges and just £47 billionof tax raising measures, even if you take Jeremy Corbyn's numbers at face value."

Nick queried the numbers, suggesting they are differnt to the figures quoted in the newspapers.

Philip Hammond

The Chancellor sounded unsure, as he responded: "Wellthere is £95 billion pounds worth, £94.5 billion pounds worth of new policy commitments, £10.5 billion pounds worth of current savings that Labour is proposing to reverse. And against that they've got £47 billion worth of revenue that they claim would be raised. But look, the IFS has already rubbished that figure.

"If you increase Corporation Tax from 16% to 26%, there will be a response to that. There will be a reduction in investment. There will be fewer jobs created.

"Fewer jobs means fewer people earning money and paying income tax.

"So Labour's figures simply do not add up."

Labour claims it can save households more than £200 a year with their plans to nationalise the water and energy industries.

More Nick Ferrari

See more More Nick Ferrari

Dame Esther Rantzen has told LBC why she is campaigning to change the law on assisted dying

‘Dogs get treated better than humans’, Esther Rantzen says, as TV legend demands assisted dying law change

Rishi Sunak (l) puts on a brave face to the Tories by-election defeats on a visit to Harlow. New Kingswood MP Damien Egan (top r) and Wellingborough MP Gem Kitchen (bottom r)

Rishi Sunak begs frustrated Tories 'not to put Starmer in power' after party suffers double by-election disaster

New Labour MPs Damien Egan and Gen Kitchen

'They are not very good results': Tory chairman admits after double by-election drubbings as MPs call for tax cuts

The peer was speaking to LBC's Nick Ferrari at Breakfast

'It was known yesterday' Azhar Ali had made more Israel conspiracy theory comments, peer tells LBC

Scammers should be treated like violent criminals, a senior anti-fraud officer has said.

Scammers should be treated like violent criminals, senior anti-fraud officer tells LBC

The vessel is due to lead the largest Nato exercise since the Cold War, involving more than 40 vessels, after its sister ship was forced to cancel its deployment because of an 'issue' with its propeller shaft.

HMS Prince of Wales docked while it should be 'defending our interests abroad', Minister brands it 'not acceptable'

Lord Rose took aim at government quangos in the wake of the Post Office scandal

'They grow like multi-headed hydras': Asda chairman takes aim at government quangos after Post Office scandal

Exclusive
Lord Stuart Rose speaking to LBC's Nick Ferrari

Police 'not picking up the phone' to attend shoplifting 'endemic', Lord Stuart Rose tells LBC

Dentists who set up practice in areas of England with poor access to NHS care will be offered a £20,000 bonus

Health Secretary Victoria Atkins stumped on exact figure for new dentists as ministers plan £20,000 ‘golden hello’

When asked by Nick to sum up the Government in one word, Ms Keegan said: "Delivering."

Gillian Keegan rates the Government using Ofsted descriptions - and it's not 'Outstanding'

Education Secretary Gillian Keegan tells LBC she is ‘very, very confident’ of 15 hours of free childcare by April

Education Secretary Gillian Keegan tells LBC she is ‘very, very confident’ of 15 hours of free childcare by April

'Fairer' social housing reforms will ensure system used 'in the right way' by those who 'play by the rules', the Housing Minister told LBC

'Fairer' social housing reforms will ensure system used 'in the right way' by those who 'play by the rules'

Iceland CEO on his support for Labour after defecting from the Tories.

'The Tories have failed the nation': Iceland CEO and former Tory donor throws support behind Labour

The policing minister has said first-time offenders for knife crime will not be jailed.

No plans to jail first-time knife offenders despite desperate pleas of Nottingham attack victim's family

Exclusive
US voters can do better than Donald Trump and Joe Biden

'Two old men fighting over a Zimmer frame': US can do better than Trump or Biden as president, says Jon Sopel

Nick Ferrari says bosses need to 'get a grip' and start justifying their huge pay packets with services that actually work

Firms led by overpaid bosses need a ‘reality check’ - let's get people back to the office, says Nick Ferrari