Rachel Reeves: Government enlightens people on the economy

  • By Faisal Islam
  • Economics teacher

video title, SEE: Abolishing National Insurance a 'tax bomb aimed at British pensioners’, says shadow chancellor

The government is „gaslighting” the British public about the state of the economy, the opposition has argued.

Shadow chancellor Rachel Reeves said in a speech to business leaders on Tuesday that the government’s claims that its economic plan was working were „deceptive”.

It comes ahead of key figures who could show the UK emerging from recession later this week. The Bank of England may also move to cut interest rates.

The Tories said Labor had „no plan”.

„Gaslighting” is defined by the Oxford English Dictionary as manipulating a person to „psychologically question his own sanity”.

In a speech in the City of London, Ms Reeves argued that suggestions of a return to the feel-good factor were „totally out of touch with the facts on the ground”.

However, on Friday, the first official data on gross domestic product for the three months to March could show the economy grew, signaling an official end to last year’s shallow recession.

The Bank of England may also take further steps towards interest rate cuts on Thursday, ahead of a sharp drop in inflation – which is how prices rise over time – later in the month.

While Ms Reeves admitted „these things could happen this month”, the Opposition’s intervention was designed to undermine the Government’s argument that the cost of living crisis was over and the upcoming general election was about „securing recovery”.

Days after tough local and mayoral elections for the Conservatives, Ms Reeves announced that Labor hoped to contest the general election „on the economy”, saying voters could choose between „five more years of chaos with the Conservatives” or „stability”. with a transformed Labor Party”

In response, Conservative leader Richard Holden MP said, „Labour may change but the Labor Party has not.”

He said Labor had „no plan” and would send the British public „back to square one” with higher taxes and higher unemployment rates.

Mr Reeves reiterated Labour’s commitment to a new vision for the green economy, mirroring thinking in the US and Europe, despite abandoning its long-standing plan to borrow and spend £28bn of public money on new, green industries.

In response to a question from the BBC on Tuesday, Ms Reeves said getting clean energy and creating green jobs by 2030 could be done in „other ways”, including creating GB Energy, the National Wealth Fund and planning reforms.

Ms Reeves said the UK’s planning system was holding back investment in low-carbon industries.

Last month, his National Wealth Fund „task force”, led by former Bank of England governor Mark Carney and the chief executives of Barclays and Aviva, met to discuss how to raise £22 billion in private sector investment in next-generation technologies.

It is expected to be announced again before the summer.

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