RACHEL Reeves admitted she was “disappointed” today after the economy shrank for the second consecutive month. Britain’s GDP fell by 0.1 per cent in October, following an identical slump in September.
The Chancellor insisted her big spending Budget will help revive the dismal growth results - a flagship Labour pledge. But businesses have warned her sweeping tax raids - yet to kick in - will force them to make cutbacks on staff and investment. Ms Reeves said this morning: “We are determined to deliver economic growth as higher growth means increased living standards for everyone, everywhere.
This is what our Plan for Change is all about. "While the figures this month are disappointing, we have put in place policies to deliver long term economic growth.” She pointed to her decision to cap Corporation Tax at 25 per cent, and pump billions into clean energy projects.
Hikes to the employer rate of National Insurance were announced at the October 30 Budget and so will not be fully reflected in today’s ONS stats. Shadow Chancellor Mel Stride blamed the dire economic performance on Ms Reeves’ gloom-mongering about the state of the finances since she took office. The Tory MP said: “It is no wonder businesses are sounding the alarm.
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