The Chancellor has been accused of trashing the economy due to her “reckless choices,” which comes as she is celebrating official figures show the UK’s Gross Domestic Product (GDP) rising by 0.7%.

The Chancellor said on Thursday the figures “show the strength and potential of the UK economy.”

“Up against a backdrop of global uncertainty we are making the right choices now in the national interest,” she added, but accepted there is “more to do.”

However Conservative Shadow Chancellor Sir Mel Stride has warned that the reality is very different as mass redundancies are happening amid Rachel Reeves employer’s national insurance hike and the increase to the minimum wage.

The IMF has downgraded the UK’s growth forecast for 2025 and 2026 and the Treasury watchdog, the Office for Budget Responsibility (OBR) has cut the 2025 growth projections from 2% to 1%.

Read more related news:

Economist warns there is ‘more turbulence ahead’ despite growth in the economy

Chancellor issued with a warning over her dangerous pensions threat

Rachel Reeves plans for your pension which is ‘dangerous and misguided’

Chancellor blamed for ‘record levels of returned vehicles due to redundancies of working people’

Unemployment in the UK has risen by 10% as the Chancellor’s “job tax” has crippled businesses.

“While it’s welcome the economy is growing, both the OBR and IMF have downgraded the UK’s growth,” Sir Mel said.

“Labour inherited the fastest-growing economy in the G7, but their decisions have put that progress at risk.

“Labour’s jobs tax, unemployment bill and reckless choices have seen the number unemployed rise by 10% and working families £3,500 worse off.

“Only the Conservatives believe in low tax, free-enterprise and less regulation, giving business the conditions to create good well paid jobs and wealth in our economy.”

Alfie Stirling, Director of Insight and Policy of the Anti-poverty campaigners the Joseph Rowntree Foundation said, “The real test for the government’s growth mission is whether the UK economy is delivering greater financial security for families.

“But beneath the froth of quarterly GDP figures the government risks presiding over the first parliament on modern record to see a fall in living standards from start to finish, with the poorest suffering worst of all.

“As the Chancellor has pointed out herself, families experience the economy not in terms of percentage points of GDP but by the pounds in their pockets.

“A parliamentary term that ends with families worse off than when it started will prove a difficult record to defend at the ballot box, with this month’s local elections offering an early indication.

“Reversing the dire outlook for families requires an immediate and concerted shift in strategy from government.

“Direct and targeted improvements in family living standards must move to the centre of the plan for growth. Neither families or the government, can afford to wait.”