Shadow Chancellor Sir Mel Stride blasted the latest “worrying” economic figures on GB News ahead of the Chancellor’s widely-anticipated Autumn Budget in just two weeks.
It was announced this morning the economy grew at a slower rate than expected in the three months to September, according to the Office for National Statistics (ONS) figures.
However, “growth” made up a key cornerstone of Labour’s widely-lauded plan to mend “broken Britain” when they rose to power in 2024.
It was also confirmed in a separate figure that GDP fell by 0.1 per cent in September, indicating the economy shrank last month.
On today’s GDP figures, Sir Mel commented: “I don’t see them as positive at all, and I don’t think most commentators would do.
“I mean 0.1 per cent growth over the last quarter is considerably less than 0.3 per cent in the quarter before. So what we’re seeing is an economy that is slowing down overall, not growing.
“And in fact, in September, the last month of that quarter, the economy actually contracted, so we actually went backwards.
“I think these are further worrying signs that the policies that this Government is pursuing, particularly high taxes, high taxes on businesses, borrowing lots of money, spending lots of money, stoking inflation.”
Sir Mel Stride blasted the Government over the latest economic figures
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GB NEWS
He added: “We have the highest inflation according to the IMF this year in the G7, will have the highest inflation next year too. That’s keeping interest rates higher for longer.
“Servicing our national debt that this Government’s adding to is costing now about £100 billion a year, twice what we spend on defence.
“You add all those things up and that is your answer as to why we have an economy that’s really going in the wrong direction.”
Subsequently, Sir Mel offered up Ms Reeves with a “very simple choice” between tax raids “which is going to put us into an even worse position” or “gripping Government spending”.
“What you’ve got to do is get spending under control, particularly welfare spending, getting people back into work and saving, making savings as a consequence, which you can then use not just to not have to put up taxes, but actually to reduce taxes,” he told presenters Stephen Dixon and Ellie Costello.
“Now what this Government is actually saying is that they failed to get through welfare reform past their backbenches recently. That’s £5billion of this black hole that they’re looking into trying to fill with tax rises.”
In July, more than 40 MPs rebelled against the Government’s plan to cut welfare spending in a bid to plug the alleged £50billion black hole in the public purse.
Four MPs were suspended until last Friday when Prime Minister Sir Keir Starmer restored the whip to the band of backbench rebels.
Growth was found to be slower than expected, data released this morning revealed
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PAThe latest rumour to join the bandwagon of speculation is that Sir Keir and Ms Reeves could be flirting with the idea of scrapping the two-child benefit cap.
Sir Mel pointed out that increasing the scope of those being able to apply for benefits will become a fiscal burden on the British taxpayer.
“I think those are the wrong choices. What they should be doing is controlling spending and getting taxes down and the economy moving,” the Central Devon MP said.
In response to the economic outlook, the Chancellor said: “We had the fastest-growing economy in the G7 in the first half of the year, but there’s more to do to build an economy that works for working people.
“At my Budget later this month, I will take the fair decisions to build a strong economy that helps us to continue to cut waiting lists, cut the national debt and cut the cost of living.”