Rachel Reeves’ Budget response was admirable, but Labour needs to be more daring if it is to defeat the Conservatives.
Labour’s main focus appears to be on the rising cost of living and the resulting decline in living standards, which appears to be getting worse.
In her response to Rishi Sunak’s budget, Shadow Chancellor Rachel Reeves said: “At least the bankers on short-haul flights sipping champagne will be cheering this Budget today.”
Chancellor Rishi Sunak announced a £4 billion tax cut on the bank surcharge, a net £130 million giveaway on air passenger duty with reliefs for short-haul flights (such as the Prime Minister flying to Cornwall for the G7 summit or to Glasgow for Cop26), and a £3.5 billion reduction in alcohol duties.
The Conservatives promised to be the greenest government ever and introduce minimum alcohol pricing under David Cameron’s leadership not long ago.
While tax breaks for banks and flights are rightly criticized, Labour attempted to address the cost of living crisis and improve economic growth.
Reeves declared, “We’d get Britain’s economy firing on all cylinders.”
She cited the previous Labour government’s annual growth of 2.3 percent (including the global financial crisis), compared to 1.8 percent for the Conservatives until 2019 (excluding the last two years, which include the pandemic).
However, Labour’s main focus appears to be the cost-of-living crisis and its impact on living standards, which only appears to be getting worse after the Chancellor announced that inflation is about to exceed 4%.
The minimum wage will increase by 6.6 percent – or 2.6 percent in real terms if inflation remains at 4% – but it’s worth remembering that this year’s modest 2.2 percent increase has been absorbed by the current 3.1 percent rate of inflation.
Wages, in general, have been a disaster for the Conservatives, according to a new TUC analysis released this week, which shows that real pay has risen by zero percent in the last 12 years, compared to 24 percent in the previous twelve years (1997-2009).
“After taking £6 billion out of the pockets of some of the poorest people in this country, he is expecting them to cheer today at,” Reeves said, chastising the Chancellor for seeking credit for his only partial U-turn on Universal Credit.
UK news summary from Infosurhoy.
Rachel Reeves’ response to the Budget was commendable, but Labour needs to be more daring if it is to defeat the Conservatives.
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Rachel Reeves’ Budget response was admirable, but Labour must be bolder to take down the Tories
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