The Tories would need to make further cuts to social security spending to deal with the economic fall-out of the UK voting to leave the European Union, Labour has warned.
A “Tory Brexit Budget” will hit public services and low-income families hardest, a Labour analysis of figures from the Institute for Fiscal Studies found.
Labour says leaving the EU would commit the Tories to re-introducing the cuts to Personal Independence Payments they were forced to abandon after George Osborne’s Spending Review.
They also predict an increasing of the taper rate for Universal Credit, and abolishing child benefit and rolling it into Universal Credit.
Labour say the Tories would also need to raise taxes, such as increasing VAT to 22%, to meet self-imposed fiscal targets.
Government departmental budgets would fall by 2.8% on top of existing cuts, say Labour: The Department of Health would be cut by £3.5 billion, the Department for Education by £1.6 billion, the Home Office by £300 million and the Ministry of Defence by £800 million.
Tom Watson (pictured) said: “Austerity is a political choice, not an economic necessity. If the UK was to vote to leave the European Union we know the Tories would choose more austerity to deal with the economic fall-out and meet their discredited fiscal promises.
“Leave campaigners like Boris Johnson and Michael Gove need to tell the British public what a Tory Brexit would mean in terms of the public finances and further austerity.
“But what is clear is that working people across the country would pay the price of leaving the EU– through cuts to public services, social security cuts and higher taxes like another Tory VAT rise.
“This is the price of Tory Brexit. It is a price that Boris Johnson, Michael Gove and the like are happy for other people to pay.
“Britain is faced with a fundamental choice: whether to choose jobs and growth by voting to remain, or to choose exit and the Tory cuts and tax rises that would bring.
“Working people would be hurt by a vote to leave. Labour won’t stand by while that happens so we’re redoubling our efforts and saying loud and clear: we’re in for Britain.”