Statement issued by the Communist Party political committee - January 26, 2012
The Communist Party rejects the analysis peddled by the banks, hedge funds and Con-Dem government that past levels of public expenditure were the main cause of the economic and financial crisis.
We reject, too, the remedy dictated by City of London financial institutions and the EU Commission and European Central Bank, notably that massive public spending cuts and a savage attack on the wages and pensions of public sector workers are necessary in order to reduce the public sector financial deficit.
The policy of the Labour Party leadership to align itself with this analysis and these remedies is a betrayal of the millions of workers and their families who should be able to look to Labour for support and solidarity. In particular, recent statements by Ed Miliband, Ed Balls and Liam Byrne in support of deep cuts in public sector wages and pension entitlements, and in welfare benefits, represent a shameful capitulation to the banks, the Con-Dem regime and the right-wing mass media.