Chancellor Rachel Reeves delivered her spring statement in the House of Commons and claimed to have the ‘right economic plan’. But analysts issued warnings about growth and unemployment
Hapless Rachel Reeves has been compared to a “fiscal twister” that rips up everything in its path.
The embattled Chancellor faced a backlash of criticism after she delivered her spring statement amid gloomy forecasts of high unemployment and low economic growth. She claimed to have the “right economic plan” for the UK and that the Labour Government has “restored economic stability” in an “uncertain” world.
But the Office for Budget Responsibility said the UK’s economy would grow more slowly than previously expected in 2026, down from 1.4% to 1.1%. Britain’s official forecaster also warned the UK unemployment rate is on track to peak at about 5.33% this year.
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Tory shadow chancellor Mel Stride said: “Is that it? What utter complacency – a chancellor in denial. She speaks of stability. What planet is the right honourable lady on?
“She has lurched from putting up taxes to destroying growth to destroying headroom to coming back to putting up more taxes to more growth destroyed. Round and round we go, like a fiscal twister ripping up everything in its path. She is weak.”
He compared her to a “dodgy estate agent standing in a crumbling building” saying “just think of the potential”. The Tory MP accused her of making multiple U-turns on winter fuel payments, welfare reform, two-child benefit cap, farm tax, family business tax and pubs. Conservative MPs joined in to chant “U-turn” as Sir Mel gave each example.
The Fire Brigades Union (FBU) said Ms Reeves has “squandered a golden opportunity” to revive Labour’s fortunes at the spring statement. FBU general secretary Steve Wright said: “Rachel Reeves should have announced a wealth tax to kill off austerity.
“The Spring Statement will be seen as a wasted opportunity to change direction ahead of May’s elections. It’s now that much more likely that Keir Starmer and Rachel Reeves will be ousted from Downing Street soon after.”
Ms Reeves said the changes in the GDP forecast took account of a fall in net migration. She said average growth across the next five years was “largely unchanged” despite this year’s downgrade.
Unite general secretary Sharon Graham said: “Today’s statement was a real opportunity to do something for Britain – to back workers, to commit to our public services and British industry. Britain needs the government to have a real Labour vision. One that understands the deep cost-of-living crisis that is crippling families.
“This cost-of-living crisis is an everyday reality, and workers need immediate change that they can touch and feel, not numbers on a spreadsheet. If this government is going to reconnect with everyday people in Britain, it needs to stop the performative statements, roll up its sleeves and back Britain. Britain is hurting and we need action now.”
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