Sir Mel Stride has launched a scathing attack on the Chancellor as Britain’s unemployment levels reached their highest in five years.
Speaking to GB News, the Shadow Chancellor took aim at Rachel Reeves, declaring the Labour Government “does not understand business”.
According to the latest Office for National Statistics (ONS) figures, unemployment in the UK increased to 5.1 per cent in the three months to October 2025, up from five per cent in September.
Reacting to the figures, Secretary of State for Work and Pensions Pat McFadden said they simply “underline the scale of the challenge we’ve inherited”.
He stated: “There are over 350,000 more people in work this year and the rate of inactivity is at its joint lowest in over five years, but today’s figures underline the scale of the challenge we’ve inherited.
“That is why we are investing £1.5billion to deliver 50,000 apprenticeships and 350,000 new workplace opportunities for young people – giving them real experience and a foot in the door. To go further and tackle the deep-rooted issues of our labour market, Alan Milburn is also leading an investigation into the whole issue of young people inactivity and work.”
Delivering his verdict on the figures, Mr Stride told GB News: “There’s not much Christmas joy there at all. 5.1 per cent actually is the highest level since the pandemic, the highest level in five years.
“And in fact, at the last Budget, the OBR, the Office for Budget Responsibility, forecasted that unemployment will be higher in every year going forward than it was at their forecast back in the spring.”
Mel Stride has launched a scathing attack on Rachel Reeves as unemployment levels reach their highest in five years
|
PA / GB NEWS
Declaring the increase a “direct consequence” of the decisions made by Ms Reeves, Mr Stride said: “And this is a direct consequence of the choices that the Chancellor has taken.
“If you tax jobs, if National Insurance is going up, don’t be surprised if you kill growth and increase unemployment.”
He added: “They’ve also borrowed and spent large amounts of money, stoked inflation, that means interest rates staying higher for longer, which also weighs down on the economy.
“And I’m afraid it all shows a party that just does not understand business.”
The latest unemployment figures are a blow to the Chancellor | GETTY / ONS
Citing remarks made by the ex-President of the Confederation of British Industry (CBI) Rupert Soames, the Shadow Chancellor told GB News: “We saw that Rupert Soames, the outgoing president of the CBI, just said in the last 24 hours that he doesn’t have confidence.
“He doesn’t have confidence that the Government on their front bench actually have people that understand business, and that’s the root of the problem.”
Asked by host Ellie Costello for his reaction to the imminent resident doctor strikes by members of the BMA (British Medical Association), Mr Stride said the decision is “grossly irresponsible”.
He stated: “I think this is grossly irresponsible, and they were given the option by the Secretary of State to defer that action into the new year, when it would be less damaging.
Mr Stride told GB News that the figures are a ‘direct consequence’ of the ‘choices made by Rachel Reeves’
|
GB NEWS
“We’ve got this super flu running and ripping through the population at the moment, a 55 per cent increase in the incidence of that this week compared to last week. But the big mistake that was made was that the Government set all the wrong expectations when it first came to office.
“Because it just gave in to the resident doctors, gave them 22 per cent without any strings attached by way of additional productivity requirements and so on, in the naive expectation that this problem would then just go away, well it hasn’t. But it’s deeply unsatisfactory.”
Host Eamonn Holmes interjected, arguing: “These resident doctors, they say they’re being paid £18 an hour at the moment, they’re looking for £21, and surely that seems just and fair?”
Mr Stride responded: “Well, they’ve had a 28.9 per cent pay increase over the last two years, and they’re now seeking another 26 per cent. So if the economy was in a booming and strong position and was being properly managed by the Government, maybe one could afford to pay more.
“But I’m afraid that where the economy is at the moment and given the extent of the increases they’ve had in the past, getting on towards 30 per cent, I really don’t think these claims are justified.”