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'Tories are cutting the NHS, not the deficit' claims new Labour poster

By Tim Montgomerie
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This time last week it was the Tories launching a poster against Labour.

Labour hit back tonight with a poster of their own...

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It's quite clever.

We expect Labour to attack on the NHS but Labour is also attempting to say that the Coalition is failing in its central purpose of deficit reduction. Using official ONS data Labour is claiming that borrowing is actually up by more than a fifth since the same period last year.

In tomorrow's FT, however, Janan Ganesh argues that there may be light around the corner:

"Business surveys report more confidence than is usual in a shrinking economy. Growth figures have been revised slightly upwards. Above all, the labour market defies the gloom. Employment and unemployment numbers are improving, with new private sector jobs more than making up for job cuts in the public sector. Mr Osborne would be foolish to raise hopes of a vigorous recovery, especially as he was too sanguine about economic prospects when he assumed office. The eurozone crisis could still scupper the modest gains. But it is just possible that the worst of the tumult is over."

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