Rachel Reeves is accused of killing growth as Bank of England warns UK economy is grinding to halt after her anti-business Budget
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Rachel Reeves was yesterday accused of killing growth as the Bank of England warned the economy is grinding to halt in the wake of her anti-business Budget. Before Labour took office Britain’s economy was the fastest-growing in the G7 – and was described as going ‘gangbusters’ by the Office for National Statistics. But now it faces a period of stagnation.
![[Andrew Sentance, a former Bank of England economist, said: 'Higher inflation, higher pay increases, and a damaging Budget which has yet to fully affect the economy. Not a surprise that the financial markets are pushing up UK bond yields']](https://i.dailymail.co.uk/1s/2024/12/19/22/93335067-14211597-image-a-15_1734646420255.jpg)
But in a new forecast, the Bank downgraded its UK growth outlook for the last three months of this year to zero, from a previous prediction of 0.3 per cent. It is the latest evidence that the Chancellor’s £25bn National Insurance hike is crushing business and leaving Labour’s pre-election promise to prioritise the economy in tatters.
![[People walk past the Bank of England building before the announcement of the central bank's interest rate decision, London, UK, 19 December 2024]](https://i.dailymail.co.uk/1s/2024/12/19/22/93335093-14211597-image-a-16_1734646451021.jpg)
Shadow business secretary Andrew Griffith said: ‘Today’s growth downgrade from the Bank of England follows warnings from almost every business group and forecaster. ‘Rachel Reeves has no feel for how to run an economy, instead she has already killed jobs, investment and growth on her watch.’.
![[Britain's central Bank, is pictured in London on December 19, 2024]](https://i.dailymail.co.uk/1s/2024/12/19/22/93335095-14211597-image-a-17_1734646454150.jpg)
Sir Keir Starmer last night appealed to the public to be patient on Labour’s promise to turn round the economy. The Prime Minister told MPs it ‘will take some time’ for people to feel the benefit of the Budget and other measures brought in by the new government.
![[A video grab from footage broadcast by the UK Parliament's Parliamentary Recording Unit (PRU) shows Britain's Prime Minister Keir Starmer attending a Parliamentary Liaison Committee hearing in London on December 19, 2024]](https://i.dailymail.co.uk/1s/2024/12/19/23/93337729-14211597-image-a-20_1734651926134.jpg)
Rachel Reeves was yesterday accused of killing growth as the Bank of England warned the economy is grinding to halt. Andrew Sentance, a former Bank of England economist, said: 'Higher inflation, higher pay increases, and a damaging Budget which has yet to fully affect the economy. Not a surprise that the financial markets are pushing up UK bond yields'.
![[Liam Byrne during his speech to the Fabian Society conference in central London. Picture date: Saturday January 20, 2024]](https://i.dailymail.co.uk/1s/2024/12/19/22/93335125-14211597-image-a-18_1734646541442.jpg)
