Rachel Reeves was accused of being missing in action earlier this week when she ducked a question about worrying economic developments – sending her deputy Darren Jones in her stead.
The Chancellor is facing calls to introduce emergency measures to reverse what her critics are calling the “damage caused by the Labour Government’s Budget” to get the economy “back on track”.
Stephen Flynn (below), the SNP’s Westminster leader, issued a warning that Labour were looking “increasingly clueless and incompetent on the economy”, with Reeves reportedly looking at the prospect of deep spending cuts.
(Image: Michal Wachucik/PA) It emerged this week that borrowing costs have hit their highest levels in 30 years, while the pound took a sharp fall against the dollar amid market turbulence.
Elsewhere, retailers have warned of rising food prices as bosses seek to pass on the increased tax burden on consumers – with a survey by the British Chambers of Commerce finding that more than half of firms were looking to hike prices because of increased National Insurance contributions.
And mortgage rates are increasing, as they did in response to Liz Truss’s disastrous mini-budget, while Brexit continues to push up the price of imported goods and jobs are being axed at the fastest rate since 2021.
READ MORE: ‘Outlier’ UK has ‘concerningly low’ gas levels amid winter freeze, energy giant warns
Flynn said: “Voters were promised the Labour Party would fix the economy – but instead they’ve made it even worse.
“There is now a very real danger that the UK faces a new cost of living crisis, rising unemployment and years of Westminster austerity cuts as a result of Labour’s incompetence.
“There is no escaping the fact that this is the Labour Party’s fault. They boxed themselves into a fiscal straight jacket on tax and shut off any route back to the EU single market – the biggest single roadblock to sustained economic growth.”
The SNP MP said that Scots were “paying the price” for Labour’s refusal to heed warnings that increased taxes on employers would stymie growth.
(Image: PA)
Referring to the gloomy economic forecasts which have haunted the Chancellor since she took office, Flynn added: “We were told driving growth was the central mission of the UK Government – but the UK economy is heading in the wrong direction, as growth forecasts are revised down not up, and the Chancellor is left begging Cabinet colleagues for any ideas to get the UK out of this mess.”
Reeves this week reportedly asked ministers to drum up ideas to encourage growth, despite previously outlining her belief the Treasury itself could help boost the economy.
Flynn said: “The Chancellor must urgently come to Parliament and outline what emergency action she will take to reverse the damage caused by the Labour Government’s Budget and get the economy back on track before the UK reaches crisis point on her watch.
“Millions of Scottish families and small businesses will pay the price if the Labour Government continues on this dangerous path to failure.”
The UK Government was approached for comment.