LABOUR have been accused of “failing on their own terms” after new figures showed the UK economy shrinking for the second consecutive month – despite Keir Starmer’s repeated pledges of growth.
Ahead of the General Election, the Labour leader said that economic growth was his number one priority, coming before issues like child poverty or underfunded public services.
Instead, Starmer said that policies like the two-child cap could only be lifted after Labour had delivered economic growth. He doubled down on this pledge with his “six milestones” speech earlier in December, where growth was listed first.
But new figures from the Office for National Statistics (ONS), published on Friday, said gross domestic product (GDP) had contracted 0.1% in October.
That followed an 0.1% estimated fall in September – meaning it is the first time the economy has contracted for two consecutive months since March and April 2020, during the onset of the Covid-19 pandemic.
SNP MSP Kenneth Gibson said Labour "promised to kickstart economic growth but those latest disappointing figures show that the Chancellor's messaging and policies are having the opposite effect".
"A wide range of experts have warned that the Chancellor's decision to hike employers' National Insurance rates will lower wages and stifle economic growth. Meanwhile Labour has continued to bury their heads in the sand and failed to address the damaging impact that Brexit continues to have on our economy," he added.
Scottish Greens co-leader Lorna Slater MSP said Labour were “not just failing badly, they are failing on their own terms”.
“When Rachel Reeves made a series of devastating cuts she said it would be worth it because it would supposedly bring growth, but they've even failed to do that,” Slater, the Greens’ spokesperson for economy, went on.
"There has been far too much pain and no gain. For the families struggling with the cruel two-child cap and the pensioners being forced to go hungry to heat their homes, Labour has offered nothing but disappointment.
"It doesn't need to be this way. The economy can work for people and planet."
Chris McEleny, Alba’s general secretary, predicted that Starmer would find himself out of office if the economic outlook does not improve in 12 months.
“Starmer has chosen to take money out of the pockets of pensioners by robbing them of their Winter Fuel Payments and he’s threatened nurses that they won’t get a pay rise unless they work harder,” McEleny said.
“When it comes to Scotland’s oil and gas his Labour Government have shattered confidence in investment in the sector.
“Labour have put all their eggs in the growth basket but have actively pursued policies that will reduce disposable income, stagnate wages, and wreck the economy.
“At this rate it won’t be the next election Starmer is gone by, it’ll be the end of next year.”
Debapratim De, director of economic research at Deloitte, said: “Growth is expected to remain sluggish over the winter months, before the budgetary boost to public spending shows up in the GDP figures.
“Despite the downbeat assessment, a rate cut by the Bank of England seems unlikely this month as policymakers remain cautious about the inflationary impulse from the Budget and the wider geopolitical environment.”
