Rachel Reeves has responded to recent criticism of her economic policies, insisting that other countries have also seen borrowing costs increase. The Chancellor’s comments follow figures released on Thursday that showed the UK economy grew by 0.1% in November, fuelling concern that growth could remain stagnant for some time to come. Despite criticism from businesses and political opponents, Reeves defended her recent decisions, describing them as “difficult” but “right” for the national interest. She added that her “number one mission” was to boost economic growth, encouraging regulators to “do what is needed” to facilitate this.
Speaking to the Political Thinking with Nick Robinson podcast, Reeves remained determined in the face of personal criticism, stating she “had what it takes to deliver for people in this country.” She also dismissed the idea that her policies would damage business confidence, saying that the alternative would be far worse: “not addressing the problem” could lead to financial markets looking at the UK government as “spending more money than it is bringing in”.
The rise in National Insurance contributions, paid by businesses, has been a particularly contentious issue for Reeves. The tax change has led to criticism from businesses, who have warned that it could lead to price rises and job losses. The boss of retail giant Next, Lord Wolfson, has called on the government to stagger the changes to avoid a reduction in entry-level jobs or hours available. However, Reeves defended the change, saying that in light of the circumstances she inherited, she judged that she had to ensure that “the sums added up.”
Despite criticism of her policies, Reeves remains committed to her mission to improve growth in the UK economy. She also remains determined in the face of criticism, stating that she will not allow it to impact her focus on achieving the government’s mandate to grow the economy
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