Rachel Reeves and the rest of the Labour party have been accused of breaking manifesto promises since they took office just a few months ago.
Rachel Reeves has been accused of breaking Labour manifesto promises. (Image: Getty)
Rachel Reeves has been accused of breaking Labour manifesto promises in her highly controversial autumn Budget, and according to experts, more is to come.
Top economists are raising alarm bells over a potential new tax hike just one day after it was announced the UK is dangerously close to a recession.
The flatlining economy has come just months into the new Labour government, with zero growth occurring between July and September. This is not much worse than the original estimate of 0.1%.
Leading economists have warned that the Chancellor could strike with another tax raid after well and truling “killing” the UK economy.
Andrew Griffith, Tory business spokesman, said Labour has “killed, plucked and cooked the UK economic goose“.
Reeves presided over the biggest Budget tax raid in history. (Image: Getty)
Paul Johnson, director of the Institute for Fiscal Studies (IFS) think tank, laid out a pontential timeline that Reeves could adhere to should she choose to “come back for yet more money”.
He told Times Radio: “It’s not impossible that the Chancellor will feel she needs to come back for yet more money next autumn if the economy doesn’t pick up.
“It’s all a bit miserable … Zero for the third quarter, and it’s looking like zero for the final quarter as well, tax increases in the Budget, a general sense of gloom over the economy.”
The latest Office for National Statistics (ONS) figures show that the UK’s gross domestic product (GDP) had grown in the first two economic quarters before slowing down and stagnating in the third and fourth, coinciding with the new Labour government.
This means the value of goods and services produced by the country has decreased under Keir Starmer
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Shadow Chancellor Mel Stride slammed Labour for “tanking” economic growth and called on them to “urgently revist” their Budget to make amendments that will change this.
She said: “Growth has tanked on Labour’s watch. The Labour Government must now urgently revisit their disastrous Budget and align economic policy with growth, not decline.”
In her Budget, Reeves announced £40 billion in tax hikes, including £25 billion from employers’ National Insurance contributions, which could ultimately result in fewer jobs, lower pay, and higher prices.
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