Rachel Reeves has been handed a brutal economic verdict by Shadow Chancellor Sir Mel Stride, who accused the former Treasury chief of leaving Britain facing a “perilous” financial situation.
The Conservative MP launched a fierce attack on Reeves’s record in office, claiming Labour had left the economy burdened by higher taxes, increased borrowing and rising spending.
“Her record in office has been pretty abysmal,” Sir Mel told GB News.
“She has left the economy in a very perilous state. She’s overtaxed, she’s overborrowed, she’s overspent.”
The former shadow chancellor also pointed to rising unemployment as evidence that Labour’s economic approach had failed to deliver growth.
“We’ve seen unemployment rocketing up to a five-year high, particularly bad for young people,” he said.
However, Sir Mel acknowledged Reeves had achieved a historic milestone as Britain’s first female Chancellor, describing it as a significant moment despite his criticism of her economic management.
He also praised her attempts to reform welfare spending, arguing that she had faced resistance from Labour backbenchers who opposed reductions in benefits.
The warning now turns towards Prime Minister Andy Burnham, with Sir Mel predicting that the new government risks continuing the same approach on taxation and spending.
He accused Burnham of preparing to “double down” on the policies pursued under Sir Keir Starmer’s premiership, claiming voters could face further financial pressure.
“More spending, more taxing, more borrowing” would be the likely direction under the new administration, he warned.
The criticism comes as Burnham attempts to reshape Labour’s economic message, promising a new political and economic model while increasing the role of the state in areas such as housing, infrastructure and essential services.
For investors and markets, the key question will be whether Burnham can deliver expanded public investment without triggering renewed concerns over Britain’s debt position.
With the Autumn Budget approaching, pressure is mounting on the new government to convince both voters and financial markets that its economic reset can deliver growth without increasing the burden on taxpayers.
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