BRITAIN'S £90bn budget deficit would be eliminated completely by 2023 at the latest under SNP anti-austerity plans, senior party sources have insisted.

 

They suggested the state's books could be balanced even quicker in the 2020-25 UK Parliament if resources were used successfully to grow the economy.

Nicola Sturgeon wants to end the era of austerity this year and has suggested a "modest" annual increase in spending of 0.5 per cent of GDP, which, over the five years of the next parliament, would amount to £180bn.

Earlier this week, the First Minister said: "I don't propose a rising deficit; I just propose a slower pace of reductions because it's more responsible...I don't think people across the country can afford further spending cuts."

She added: "It will take two or three years longer to completely eliminate the deficit...But that's a price worth paying for lifting the pain of austerity and giving people across this country a better chance in life."

Under Tory plans the overall deficit - currently £90.2bn or five per cent of GDP - would be eliminated by 2018 when there would be a £5bn surplus, according to the UK Government's independent forecaster, the Office for Budget Responsibility.

Labour has a different approach; to eliminate the current budget by the end of the next parliament but to continue borrowing for capital spending on infrastructure. The Tories claim this would mean a "never-ending" overall deficit; initially of around £30bn.

While Labour has yet to clarify when it would eliminate the overall budget deficit, the SNP has insisted this would happen, under its proposals, by 2023.

A senior source explained: "Our proposals would see the deficit fall in each and every year of the next Parliament, bringing the overall deficit down to below two per cent by 2019-20, in line with the average of the last 60 years. The current budget deficit will be eliminated at this point.

"The overall deficit, including borrowing for the capital budget, would be eliminated in a further two to three years. Capital borrowing is an essential part of ensuring the long-term success of the economy by enabling major investments in infrastructure to support future economic growth."

He added: "However, by successfully using the additional resources to increase economic growth or tax revenue the deficit may fall faster."

But a Conservative Party spokesman said: "The SNP, just like Ed Miliband, have no plan for the British economy; only chaos.

"And here we have further proof that weak Ed in Downing Street, propped up by Alex Salmond with Nicola Sturgeon holding the country to ransom, means more borrowing, higher taxes and more debt than our children could ever hope to repay," he added.