LABOUR: The Autumn Statement is a placeholder for the 'abject failure of the last six wasted years'
Chancellors uses the annual Autumn Statement to update the country on the government's taxation and spending plans.
Chancellor Hammond's major policy announcements this year included an increase of the National Living wage from £7.20 to £7.50, a new £23 billion "National Productivity Investment Fund," and a reduction in benefit entitlements under the "Universal Credit" system.
The chancellor was also forced to revise down growth and debt forecasts. He announced that debt was set to peak at a record level of 90.2% of GDP in 2017-18, and revised the UK growth forecast for 2017 to 2.2% from 1.4%, reflecting Brexit uncertainty.
McDonnell said in response that "the verdict could no be clearer."
He said: "The so-called long-term economic plan has failed. The new chancellor acknowledged the failure himself in October of the economic strategy when he promised a reset of economic policy."
"Today we expected a change of direction after those six wasted years," he added. "Instead, we've seen further cuts to earnings for those in work through cuts to universal credit, and a living wage increase that is lower than expected under the previous chancellor."
McDonnell also attacked the Tories for their handling of Brexit, which he called "greatest economic challenge of a generation." He said that Labour "respects the decision" of the June vote, but said that the "chaotic Tory handling of Brexit threatens the future prosperity of this country."
He called for the government to press for full access to the single market during after Britain leaves the EU, which he said was "the right thing for British workers and businesses."
McDonnell warned in September that Single Market access after Brexit was "not realistic," but nonetheless believes that the government should push as hard as possible for access during negotiations.
He also said on Tuesday that those seeking to impede Britain's exit from the EU were on the side of "certain corporate elites."
His stance appears to be markedly different to that of Jeremy Corbyn. The Labour leader warned in November that Labour could delay the triggering of Article 50 in parliament if the government cannot guarantee "Labour's bottom line" of Single Market access.