Rachel Reeves has been dealt a contemporary blow a day after her Spending Review with figures revealing the UK financial system contracted by 0.3% in April. Forecasters had predicted a 0.1% dip however the determine, launched by the Office for National Statistics on Thursday morning, is decrease than anticipated amid tariffs and National Insurance hikes. It can also be the worst fall since October 2023.
Shadow Chancellor Sir Mel Stride stated: “Before the election Labour promised ‘growth, growth, growth’ but today’s fall in GDP lays bare the disappointing consequences of Rachel Reeves’ economic vandalism.
“Yesterday, the Chancellor ought to have taken corrective motion to repair the issues she has triggered. But as a substitute her Spending Review has all however confirmed what many feared: extra taxes are coming. Under Labour, we have now seen taxes hiked, inflation nearly double, unemployment rise, and progress fall. With extra taxes coming, issues will solely worsen and hardworking folks can pay the value.
The dip in April adopted a stronger first three months of the yr with progress of 0.7% within the first earlier than Donald Trump’s tariffs and NI will increase struck.
Liberal Democrat Treasury spokeswoman Daisy Cooper MP stated: “At the Spending Review yesterday, the Chancellor suggested that the country was on the up but today this claim has not survived contact with reality.
“Today’s figures should be a wake up call for the Government which has so far refused to listen to the small businesses struggling to cope with the jobs tax, worried that our high streets will be completely hollowed out and that our hospitality sector is hanging by a thread.
“To tackle Trump’s tariffs, Ministers must stop cowering in the corner and get on with building an economic coalition of the willing with our European and Commonwealth neighbours.
“It’s time for the Government to get serious, scrap their damaging jobs tax and go for growth with a bespoke UK-EU Customs Union that will raise billions to re-build our public services.”
Ms Reeves insisted her primary mission is “delivering growth to put more money in people’s pockets” by means of their plan for change.”
She contiued: “While these numbers are clearly disappointing, I’m decided to ship on that mission.
“In yesterday’s spending review we set out how we’ll deliver jobs and growth – whether that’s improving city region transport, a record investment in affordable homes or funding Sizewell C nuclear power station. We’re investing in Britain’s renewal to make working people better off”.
https://www.express.co.uk/news/politics/2067560/rachel-reeves-gdp-april-growth