SHADOW Chancellor Rachel Reeves will confront the UK Government’s approach to the economy, accusing ministers of “gaslighting” the public with overly optimistic claims that are out of touch with Britons grappling with the cost of living.
In a speech planned for Tuesday in the City of London, Reeves will pre-empt the Conservative response to upcoming economic data. She will argue that Jeremy Hunt and Rishi Sunak’s anticipated message of economic improvement is detached from reality.
Labour’s recent electoral successes in regional mayoral contests, local elections, and a by-election in Blackpool South have buoyed the party. Reeves will highlight these wins as evidence that voters have opted for change.
Her remarks precede key economic events this week: the Bank of England’s interest rate decision on Thursday and the release of first-quarter economic performance figures on Friday. Despite government pressure, economists predict the Bank’s Monetary Policy Committee will maintain the current interest rate at 5.25%.
There is optimism that the Office for National Statistics’ quarterly GDP data will confirm the UK’s exit from recession, which may hearten ministers.
Reeves plans to counter the Government’s narrative, stating that by the next election, interest rates could drop, the UK could exit recession, and inflation could align with the Bank of England’s target, possibly as soon as this month.
She will challenge the Chancellor’s repetitive assertions about economic improvement, arguing that they ignore reality.
During her travels for the local elections, Reeves engaged with voters nationwide and heard their stories. She asserts that Government claims of prosperity fall flat with ordinary people facing genuine challenges.
Describing the Conservative economic record as crashing the car and abandoning it, Reeves vows that Labour will offer a distinct vision: boosting growth, enhancing living standards, bolstering public services, and restoring Britain’s global competitiveness.
Labour’s economic agenda includes establishing a national wealth fund for investment, reforming planning laws to facilitate home construction, and creating jobs in industrial areas.
Reeves acknowledges the difficulties ahead but insists they can be overcome with vision, courage, and responsible governance.
Despite historical Tory advantages in economic trust, polls suggest Labour’s emphasis on stability and adherence to fiscal rules is resonating.
Labour’s critique of Conservative economic management as chaotic and in decline is underscored by a video series titled “Conflix” on their website.
Conservative Party Chairman Richard Holden countered by criticising Labour’s economic policies, linking Reeves to Gordon Brown and warning against a return to what he views as failed strategies.
