Labour has slammed Prime Minister Rishi Sunak‘s economic strategy, declaring it a failure after official figures confirmed that the UK has entered a recession. Shadow Chancellor Rachel Reeves accused Sunak of being out of touch and unable to deliver on his promises, stating that the British people are paying the price for Conservative mismanagement.
The Office for National Statistics (ONS) released data revealing that gross domestic product (GDP) dropped by 0.3% in the final quarter of 2023, marking a technical recession. This announcement deals a blow to Sunak’s credibility, as he had pledged to prioritize economic growth as a cornerstone of his leadership.
Speaking at a press conference, Rachel Reeves criticized Sunak’s claims of economic progress, pointing to the shrinking economy as evidence that his plan is not working. She accused the Prime Minister of making promises that have fallen apart, highlighting the failure to grow the economy and the detrimental impact on working people.
Reeves also criticized reports of potential public service cuts to fund tax giveaways in the upcoming Budget, calling such proposals dangerous and misguided. She emphasized the need for immediate cash injections into public services to alleviate pressure.
In response to questions about potential tax cuts in the Budget, Reeves refrained from making commitments, citing the need to assess the state of public finances. However, she expressed her opposition to tax increases on working people, stressing the importance of responsible economic policies.
Liberal Democrat leader Sir Ed Davey echoed Labour’s criticism, describing Sunak’s recession as a result of Conservative chaos and incompetence. He argued that the British people are bearing the brunt of economic turmoil caused by Conservative mismanagement.
The announcement of the recession has prompted calls for government action to prioritize public investment over tax cuts. Pranesh Narayanan, a research fellow at the Institute for Public Policy Research (IPPR), urged the government to address chronic underinvestment in essential services and infrastructure.
The larger-than-expected decline in GDP between October and December 2023 underscores the urgency of the situation, with analysts warning of potential revisions to the data in the future. As the UK grapples with economic challenges, the pressure is mounting on the government to implement effective policies to stimulate growth and support recovery.
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