Labour: Chancellor Has 'Betrayed' Country

George Osborne has "betrayed" the country with his handling of the economy, shadow chancellor John McDonnell has said.

In response to the Chancellor's Spending Review, Mr McDonnell said his opposite number had "some front" to stand up in the Commons and "lecture us (Labour) about deficit reduction".

He said: "We were promised that by today the deficit would be eliminated and debts would be under control and falling dramatically.

"People put their trust in that commitment."

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Mr McDonnell added: "After five years the deficit has not been eliminated and this year it's predicted to be over £70bn.

"Instead of taking five years, it's going to take 10."

Mr McDonnell told Mr Osborne he had "nobody else to blame" after more than five years in charge of the nation's finances, and said the Spending Review was "sheer economic illiteracy built upon incompetence and poor judgement".

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He condemned the Chancellor's record, claiming that during his time in Number 11 there had barely been a target he had not missed or ignored.

Mr McDonnell said that in order to "dig himself out of a hole" Mr Osborne was "selling off whatever public assets he can".

"This is no longer the family silver up for sale, this is the furniture, the fixtures and the fittings," he said.

China would be at the front of the queue, Mr McDonnell predicted, noting wryly: "Can I just say I never envisaged that when it came to nationalising I would be outdone by a Conservative Chancellor.

"The only difference between us is that I would like to bring services like rail back into the ownership of the British people - the Chancellor wants to sell them to the People's Republic of China."

Mr McDonnell then proceeded to read a passage from Chairman Mao's Little Red Book, a collection of quotations from China's former leader, to "help" Mr Osborne deal with his "newfound comrades".

"We must learn to do economic work from all who know how," the quote began.

"No matter who they are we must esteem them as teachers, learning from them respectfully and conscientiously.

"But we must not to pretend to know what we do not know."

During his response Mr McDonnell also claimed the Chancellor's Spending Review was the launch of his manifesto for the Conservative leadership.

"Our long-term economic security is being sacrificed for the benefit of one man's career," the shadow chancellor asserted.

He concluded: "In the end this debate is about what sort of society we want to live in.

"The government is systematically dismantling all those aspects of our society that make our communities worth living in and celebrating.

"The Chancellor is not just cutting services today, he's selling off our future. But there is an alternative."