Yahoo Finance Election 2024: UK crises made worse by ‘Conservative choices’, Reeves says
The UK’s “unique exposure” to economic crises “can only be explained by choices made by Conservative governments”, Labour’s Rachel Reeves has argued.
Speaking at Rolls Royce, in Derby, the shadow Chancellor highlighted Prime Minister Rishi Sunak’s claim that his party’s “plan is working”, saying: “I want to take that head-on.”
It came as a letter backing Labour signed by 121 business figures was published in the Times, describing the general election as a “chance to change the country”.
Signatories, including Iceland founder Sir Malcolm Walker and JD Sports chairman Andrew Higginson, said the UK has “the potential to be one of the strongest economies in the world.
Lack of political stability and the absence of consistent economic strategy have held it back.”
Reeves said Sunak wanted voters to think “the chaos and instability wrought by Liz Truss was just a blip” and that “deep problems we face are down to global events… not his fault”.
She added: “‘Don’t judge 14 years on 49 days’, he will say.”
But addressing an audience of business leaders and journalists, the Labour politician said: “While it is true that the crises we have faced are global in origin, our unique exposure to those crises – the reasons we have been hit harder than many comparable countries by the economic impact of Covid and then by inflation and rising energy prices – can only be explained by choices made by Conservative governments here at home.
“While the Prime Minister want this election to be about whether inflation is coming down this month, he omits to mention when it started to rise: on his watch as Chancellor.
“Even before the Conservatives, in their clamour to cut taxes for those at the very top, sent interest rates and mortgage costs spiralling.”
Reeves argued: “He omits to mention when it peaked too – on his watch as Prime Minister.
“And he omits to mention the families and businesses dealing with the consequences of Conservative economic mismanagement today.”
Mel Stride, work and pensions secretary, said: “Rachel Reeves confirmed this morning that pensioners will pay the retirement tax under Labour.
“Labour will not match our commitment to increase personal tax thresholds for pensioners and will instead raise taxes by £2,094 on hardworking families. They do not have the courage or conviction to name a single tax they would cut.”
He added: “Only Rishi Sunak and the Conservatives have a clear plan, backed by bold action, to end the double tax on work and ensure pensioners who have worked hard their entire lives will have a new tax-free threshold to protect them.”