Labour’s shadow chancellor, Rachel Reeves says, the government’s economic plan won’t result in annual growth of 2.5%.
Liz Truss, according to Ms. Reeves, does not understand how her policies are affecting the public.
“The prime minister just doesn’t seem to understand the anxiety and fear,” Ms Reeves told the BBC.
“This is a crisis made in Downing Street but it is ordinary working people who are paying the price.”
It has been suggested that the Truss administration is trying to use “tickle down economics” – the idea that tax cuts for the rich will create greater wealth in general, some of which will “trickle down” to those who are less well off.
It was announced in the mini-budget nine days ago that the top rate of tax – 45% – was being abolished.
But Ms Reeves commented: “The idea that trickle-down economics is somehow going to deliver the 2.5% growth we all want to see is for the birds.
“The prime minister and the chancellor are doing some sort of mad experiment with the UK economy and trickle-down economics.
“It has failed before and it will fail again.”
The prime minister has said that removing the top rate of tax was the chancellor’s idea.
But the chancellor’s spokesperson has said the pair are “in lockstep” on the issue (12.18 post).