The UK government has come under fire for allegedly “gaslighting” the public regarding the state of the economy, according to the shadow chancellor. Rachel Reeves delivered a scathing speech in the City of London, as the opposition party takes the fight to the government on their own turf ahead of the upcoming general election.
Traditionally, running a strong economy has been a key focus of Conservative election campaigns. However, with a slew of economic data being released this week, Ms. Reeves is determined to get ahead of the government’s messaging. She claims that Chancellor Jeremy Hunt and Prime Minister Rishi Sunak’s assertions that the economy is improving are “deluded.”
The Bank of England is scheduled to make its latest decision on interest rates on Thursday, with expectations that borrowing costs will remain at 5.25%. While the government aims for a decrease in this rate, it is ultimately the Bank’s decision as they set the base rate independently. Additionally, the Office for National Statistics (ONS) will release quarterly GDP data this week, which is expected to confirm that the UK has emerged from the technical recession it has been in.
Following the Conservative Party’s defeat in the recent local elections, Ms. Reeves has taken the lead in addressing the state of the economy. She stated, “By the time of the next election, we can, and should, expect interest rates to be cut, Britain to be out of recession, and inflation to have returned to the Bank of England’s target. These changes could potentially occur as soon as this month.”
Ms. Reeves continued, “I am well aware of the chancellor’s response to these potential developments. He has been repeating the same rhetoric for months now: ‘The economy is turning a corner,’ ‘our plan is working,’ ‘stick with us.’ I want to directly address these arguments because they do not align with the current economic reality.”
She also shared, “During the local elections, I traveled across the country and spoke to hundreds of people. I listened to their stories. And when they hear government officials claiming that they have never had it so good and to expect a ‘feelgood factor,’ all they hear is a government that is completely out of touch with the realities on the ground. The Conservatives are gaslighting the British public.”
Ms. Reeves made it clear that Labour will center their election campaign around the economy. They plan to emphasize previously announced policies, including a national wealth fund to drive private and public investment, reformation of planning laws to build 1.5 million homes, and the creation of 650,000 jobs in the UK’s industrial heartlands.
Conservative Party chairman Richard Holden responded to Ms. Reeves’ claims by stating, “The personnel may change, but the Labour Party remains the same. Rachel Reeves still idolizes Gordon Brown, who infamously sold off our gold reserves and nearly led Britain to financial collapse with his hubris. Labour lacks a solid plan and would only bring us back to square one with higher taxes, increased unemployment, an illegal amnesty on immigration, and a betrayal of pensioners, just as Gordon Brown did.”
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