Labour’s shadow chancellor, Rachel Reeves, has accused the government of “gaslighting” the British public over the true state of the economy. In a speech aimed at business leaders, Reeves argued that claims the government’s economic plan is working are “deluded” and “completely out of touch with the realities on the ground”. The speech comes ahead of official figures, likely to show that the UK has just emerged from recession. The Bank of England may also take interest rate cuts later this week.
Labour appears to be pre-empting the government’s argument that the cost-of-living crisis is over and that the general election will be concerned with “protecting the recovery”. Reeves accused Conservative Chancellor George Osborne and other senior figures of “gloating” over the figures and selectively interpreting them. Reeves argued that despite the end of recession, the UK is not experiencing a traditional recovery as living standards are still falling and job insecurity continues to rise.
Responding, Conservative Party Chairman Richard Holden stated that despite Ms. Reeves’ criticisms, Labour had “no plan” and would result in the public being taken “back to square one” with higher taxes and increased unemployment. In her speech, Reeves restated Labour’s commitment to creating a green economy, reflecting initiatives in other nations.
Labour’s intervention comes shortly after disappointing local and mayoral election results for the Conservative Party. Reeves reportedly hopes that Labour can fight the general election on the basis of economic policy, offering voters a choice between five more years of Conservative chaos or stability with a changed Labour Party
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