Rachel Reeves drives UK deeper into debt and decline – this is dire even by her standards
How much longer can we stand life under this Chancellor?
Yet another disastrous day at the office for Rachel Reeves (Image: Getty)
Every day brings a torrent of terrible tidings courtesy of Rachel Reeves, and this one is no different. We woke to news that retail sales fell 0.1% in November despite the annual Black Friday binge, in another blow for the beleaguered high street. Labour-backing newspaper The Guardian called the dip “unexpected”, but I’d say it was completed expected.
The economy shrank 0.1% in September, then another 0.1% in October. So today’s number is hardly an outlier. Especially with every other economic indicator going into reverse too.
Unemployment has rocketed from 4.2% when Labour took power to 5.1% today and the blame sits squarely at Reeves’ door.
Her £25billion ‘jobs tax’, two inflation-busting minimum wage hikes and disastrous business rates overhaul will terminate still more jobs, while Ed Miliband does his level best to destroy what’s left.
In further bad news this morning: Reeves borrowed another fistful of money in November, which funnily enough The Guardian described as “more than expected.” Or as I would say, exactly as expected. It’s what she does. Reeves borrows too much every month. The only surprise is that she didn’t borrow even more.
In doing so she added another £11.7billion to the deficit, taking total borrowing for the year to a staggering £132.3billion, the highest since Covid. And that’s despite surging tax receipts.
Why the splurge? Is there a pandemic lockdown I somehow failed to notice? Or perhaps a full-scale war requiring emergency spending? Nope (or at least, not yet). Nonetheless, Reeves is still burning through billions every month.
And her response? Silence. Not a squeak.
James Murray, chief secretary to the Treasury, did pop his head above the parapet, though he really shouldn’t have bothered.
Widely tipped as next Chancellor when Reeves gets the boot, he trotted out the usual robotic Labour spin saying: “£1 in every £10 we spend goes on debt interest – money that could otherwise be invested in public services. That is why last month the Chancellor set out a Budget that delivers on our pledge to cut debt and borrowing.”
Two points. First, that £1 in every £10 could actually be used for tax cuts to revive the economy or to pay down the national debt. Does that never occur to Labour? Answer: no. It must be spent.
Second, last month’s Budget did nothing to cut debt or borrowing. Reeves talked about it, but she isn’t going to do it.
Under her plan, the UK only moves into surplus in 2030/31. That’s conveniently after the next election, when Labour will be gone, and someone else will have to pick up the pieces.
So Murray was talking dross, as expected. No doubt Reeves will soon reappear to spout more rubbish about how she’s “fixed the foundations” of the economy, even as the roof collapses and walls fall in. Which is happening before our eyes. Every single day. Including this one.
