Shadow Chancellor of the Exchequer made an ominious prediction during an appearance on Breakfast indicating people can expect “lower living standards going forward.”
Discussing the GDP figures which saw the economy rise by just 0.1% he said: “We’re all going to be paying the price of that.”
“We’re looking at an economy that is really just not going anywhere at all from a government that promised growth, growth, growth,” Stride said.
“I’m afraid we’re all going to be paying the price of that in different ways, in lower wages and lower living standards going forward.
“And really, this has happened on their () watch. They talked the economy down after the general election and destroyed business confidence. They had that terrible, disastrous budget, which, of course, whacked up taxes, particularly on businesses, the National Insurance increases and so on. And that is at a root of what you’re seeing at the moment… So not good news. And I say that with no pleasure whatsoever,” he said.
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Mel Stride made an ominous prediction during an appearance on GB News Breakfast (Image: GB News)
Presenter pointed out: “And not going to get better, because those national insurance tax hikes have yet to come in,” referring to the increase in costs for employers.
“Absolutely right,” Stride agreed. “So in the first part of April, when the new tax year comes along, that’s when the tax increases will then bite.
“That’s not just the increase in the rate of national insurance for employers. It’s also reducing the threshold, dragging far more lower paid and part time workers into paying national insurance for the first time, and that of course will have a disproportionate effect on young people on the kind of businesses you think of, leisure and retail in particular, that require that rely on those kind of workers.
“So without some kind of significant U turn here, I think the near term, the near medium term, does not look great. We saw the Bank of England actually halving their forecasts for growth for this year, for example, in the last week alone,” Stride said.
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Eamonn Holmes and Ellie Costello discussed the economy with Mel Stride on GB News Breakfast (Image: GB News)
Ellie Costello challenged him pointing out the Labour Party will point out they need time to turn things around having inherited the issues and reminded him the ecomony only gew by 0.1% last summer before they were in power.
“Well, the inheritance there, in fact, was that we had the fastest growing economy in the G7 at the time that we transferred power to Labour,” Stride responded. “We had near record level of employment. We’d had real wages growing for 13 consecutive months.
“Debt has been climbing for a good, long, long period over different governments. We did, of course, have the crisis around the war. We had to support people through that. And, of course, as well, and supporting businesses and employment.
“And that came with a £400billion pound price tag. And I think those measures were the right thing to have done at that time. So what we ended up with was getting inflation down, for example, to bang on 2% on the day of the general election.
“We’re now seeing that rise again. That’s going to mean higher prices for people… and that’s going to make people poorer,” he said.