The Chancellor’s Budget is unravelling while firms plead for help
Chancellor Rachel Reeves is under fire over new economic data (Image: Getty)
Rachel Reeves was accused of making “the wrong choices” as new data showed the economy is “flatlining”. Employers warned the Chancellor had left them scared to invest or create new jobs. The latest figures showed the economy grew by 0.3% in November, but opposition politicians and businesses pointed out that the figure over three months was just 0.1% – meaning the economy hardly grew at all.
Sir Mel Stride, Shadow Chancellor of the Exchequer, said: “This morning’s news that growth is flatlining is more evidence of Labour’s economic mismanagement. Growth was just 0.1 per cent in the three months to November, having not grown at all in the previous three-month period. Because Labour made the wrong choices, their Budget is unravelling day by day.”
Sir Mel said: “Despite Labour’s U-turns on the Family Farms Tax and Business Rates, their Budget will still leave working people worse off and our economy weaker, with higher taxes stifling growth and fuelling inflation.
“With every U-turn, the Chancellor loses more credibility, and Labour show they do not have a plan. Only the Conservatives have a leader with a backbone, a strong team, and a clear plan to build a stronger economy and get Britain working again.”
And his gloomy prognosis was echoed by the British Chambers of Commerce. Research director Stuart Morrison said: “Better than expected GDP data suggests the impact of pre-Budget jitters among businesses may have been less than predicted. Firms will welcome confirmation that the economy bounced back to growth of 0.3% in November itself, with the more reliable three-month average showing more modest growth of 0.1%.
“The reality of the Chancellor’s statement, when it came, was no significant new taxes for firms, but a lack of game changing measures to properly kickstart the economy. Firms are telling us they’re still cautious about investing and recruiting, meaning growth will stay limited for the foreseeable.”
A Treasury spokesperson said: “To make the economy work for working people, we are reversing years of underinvestment by protecting record infrastructure investment, driving through major planning reform, backing expansion at Heathrow and Gatwick, delivering Northern Powerhouse Rail and getting Sizewell C built.
“At the same time, we are taking action to get bills and inflation down – with £150 off energy bills, rail fares, prescription charges and fuel duty all frozen, the two-child benefit cap lifted, alongside the national living wage to deliver an economy that works for working people.
“There’s more to do – driving growth, delivering the consolidation to provide stability, keeping inflation low and stable, tackling the cost of living and bringing our borrowing costs down.”
