Opposition parties take aim at Rachel Reeves over inflation rise

2 days ago 7

The chancellor, Rachel Reeves, has been a conspicuous presence in the headlines recently — and not just on account of her zealous commitment to economic growth, which Labour stresses at every given opportunity. A recent BBC News investigation found Reeves stopped working for the Bank of England nine months earlier than it stated on her... Read more » The post Opposition parties take aim at Rachel Reeves over inflation rise appeared first on Politics.co.uk.

The chancellor, Rachel Reeves, has been a conspicuous presence in the headlines recently — and not just on account of her zealous commitment to economic growth, which Labour stresses at every given opportunity.

A recent BBC News investigation found Reeves stopped working for the Bank of England nine months earlier than it stated on her LinkedIn profile. It was also alleged that the chancellor used company expenses as an employee of Halifax Bank of Scotland (HBOS) to buy handbags, perfume, earrings and wine for colleagues.

Labour largely waved away the accusations and the prime minister rushed to Reeves’ aid. A spokesperson for the chancellor insisted she left HBOS in 2009 “on good terms”.

The story, which her opponents characterised as evidence of “pressure mounting” on Reeves, has since for the most part retired from the frontpages and online headlines. Meanwhile, the news this morning on inflation serves as a welcome reminder about the task Reeves is really facing at the vanguard of Labour’s frantic push for good economic news.

According to the latest data from the Office for National Statistics (ONS), inflation saw a sharp increase to 3 per cent in the 12 months to January, up from 2.5 per cent in December. ONS chief economist Grant Fitzner said in a statement that this is the “highest annual rate” of inflation since March last year.

Reeves responded to the news with the insistence that Labour’s “number one mission” is to put “more money in people’s pockets”.

She added: “Since the election we’ve seen year-on-year wages after inflation growing at their fastest rate — worth an extra £1,000 a year on average — but I know that millions of families are still struggling to make ends meet.”

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Home Office minister Dame Diana Johnson, on the media round for the government this morning, labelled the new data as a “bump in the road”.

She told Sky News: “We had 14 years of economic stagnation. I think there’s obviously work that’s underway with the chancellor.

“But I also know that the IMF and the OECD are saying that we’re going to have the fastest growing economy in Europe. So a bump in the road. And I think the Bank of England have recognised that yesterday.”

The Conservative Party and shadow chancellor Mel Stride proffered a different take. Stride accused Reeves of being “out of her depth”, adding: “Today’s figures mean further pain for family finances – and it’s thanks to the Labour Chancellor’s record tax hikes and inflation-busting pay rises.”

“Labour were warned that their tax spending and borrowing spree would drive up inflation. It means higher prices in the shops and interest rates staying higher for longer, causing mortgage misery for millions.”

The Liberal Democrat line was arguably less sparing. Interestingly, it was leader Ed Davey, not Treasury spokesperson Daisy Cooper, with the comment.

“The chancellor’s misguided policies are putting us at risk of a new era of stagflation”, Davey said. “The economy still isn’t growing, and now people are being hit in their pockets too.”

He also hit out at the Conservatives, saying they “plunged Britain into a cost of living crisis”.

But he added: “Labour’s failures are just making the misery drag on and on.

“The government urgently needs to change course and take real action to get our economy growing strongly and bring down the cost of living, starting by cancelling their disastrous jobs tax [the rise in employers’ national insurance] and securing a much better trade deal with Europe.”

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