Labour's mixed messages on austerity risk falling into Osborne's trap

Most economists support Labour opposition to the ‘economically illiterate’ fiscal charter. John McDonnell and Jeremy Corbyn should frame a clear alternative to austerity, as promised, not backtrack

Jeremy Corbyn was elected Labour leader on an unequivocal anti-austerity platform. Shadow chancellor John McDonnell’s announcement that the party will back George Osborne’s fiscal charter has therefore caused alarm among Corbyn’s supporters. So what is Labour’s position on austerity and the deficit?

MPs will vote on Osborne’s fiscal charter later this year. The charter commits the government to eliminate the deficit by the end of this parliament and to run a surplus in all subsequent years unless economic growth falls below 1%.