Rachel Reeves has been dealt a fresh blow a day after her Spending Review with figures revealing the UK economy contracted by 0.3% in April. Forecasters had predicted a 0.1% dip but the figure, released by the Office for National Statistics on Thursday morning, is lower than expected.
Shadow Chancellor Sir Mel Stride said: “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 should have taken corrective action to fix the problems she has caused. But instead her Spending Review has all but confirmed what many feared: more taxes are coming. Under Labour, we have seen taxes hiked, inflation almost double, unemployment rise, and growth fall. With more taxes coming, things will only get worse and hardworking people will pay the price.
The dip in April followed a stronger first three months of the year, before Donald Trump’s tariffs and National Insurance hikes struck.
Ms Reeves said: “Our number one mission is delivering growth to put more money in people’s pockets through our Plan for Change, and while these numbers are clearly disappointing, I’m determined to deliver 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”.