Rachel Reeves blamed for pushing UK to brink of recession | Politics | News | EUROtoday

Labour has given up on its “growth mission” and it falls to Britain’s personal sector to rescue the nation from recession, it was claimed amid alarm on the UK’s shrinking economic system. Britain’s economic system contracted by 0.1% in October when progress had been anticipated. This has fuelled expectations the Bank of England will minimize rates of interest on Thursday – but additionally intensified requires a change in route from the Government.

Callum Price of the Institute of Economic Affairs mentioned: “The Government has entirely given up on its growth mission, but it shouldn’t have.”

He urged the Government to “double down” on planing reform and to not press forward with the turbo-charging of employees’ rights spearheaded by Angela Rayner earlier than she was pressured to resign.

He mentioned: “We want the personal sector to avoid wasting us from recession”

Daniel Herring of the Centre for Policy Studies also called on the Government not to hit businesses with more red tape, saying: “When they came to power, Labour promised businesses certainty, predictability and sympathy. Instead they’ve had tax rises, instability and months of damaging Budget speculation.

“The most obvious way to help business right now would be to abandon the damaging Employment Rights Bill and send a clear signal that any future Budgets will curb spending – and in particular the swollen welfare bill – rather than putting more burdens on the private sector.”

And economist Ewen Stewart, a member of the Growth Commission, said: “This Government is the author of its own and our misery. This week’s GDP growth numbers revealing that the economy contracted over the previous three months were predictably awful.

“Worse, manufacturing, services and construction all posted marked declines. Yet these lamentable numbers were from before the Budget which again taxed and regulated those who work to give to the increasingly failing public sector.

“It does not take a genius to work out that these measures will make matters worse going forward.”

John Longworth, chairman of the Independent Business Network, warned: “Given that the economy, far from growing as promised by the Government, is in fact shrinking we now face the prospect of a possible recession.”He pressed for the Government to abandon “net zero madness”, adding: “A focus on the opportunities of Brexit and our superior trade deals would help – only possible if we stay away from a customs union.”

A Treasury spokesperson defended the Government’s record, saying: “We defied the forecasts this year with the OBR, Bank of England, IMF, OECD, and now the BCC and CBI, all upgrading their growth forecasts. The Chancellor’s Budget will drive economic growth through billions of pounds protected for new investment, better conditions for start-ups to scale and grow, and lower inflation to support the Bank of England to cut interest rates further and spur business confidence.”

But Shadow Chancellor Sir Mel Stride said: “Just as night time follows day, Labour will increase your taxes… A accountable Chancellor would get a grip on spending – together with the welfare invoice – as a substitute of reaching for one more tax raid on working folks.

“And despite all this, she refuses to rule out coming back for more next year.”