Reform UK MP Rupert Lowe has issued a stark warning about Labour’s economic policies, claiming Shadow Chancellor Rachel Reeves will cause “catastrophic” damage to Britain’s private sector.
Speaking on GB News, Lowe criticised the business experience of Labour’s frontbench ministers.
“The damage she is going to do to the British economy is going to be catastrophic,” Lowe said. “To the private sector, not the public sector. The public sector is a function of the private sector.”
His comments come as Reeves faces mounting criticism over her autumn Budget, which introduced significant tax rises for businesses.
Rupert Lowe lashed out at Reees
GB NEWS / PA
In the October Budget, Chancellor Reeves announced a nearly £70 billion increase in public spending, partly funded by sharp increases in business taxes.
The controversial measures included a rise in employer national insurance contributions, which businesses have branded a “jobs tax”.
Reeves spoke to business bosses
POOL
Labour also raised the minimum wage, a move that received praise from workers’ groups but drew criticism from businesses.
Companies warned they would need to pass costs on to consumers, reduce hiring, or accept lower profits.
The Budget featured what has been described as record-breaking tax rises totalling £40 billion.
Thousands of farmers protested in Whitehall last week over changes to inheritance tax rules affecting agricultural land.
Rain Newton-Smith, chief executive of the Confederation of British Industry, warned that the Budget measures have made it harder for businesses to “take a chance” on hiring new people.
Speaking at the CBI’s annual conference, she pointed to a survey showing almost two-thirds of companies believe the Budget will damage UK investment.
Salman Amin, chief executive of McVitie’s owner Pladis, warned: “Going forward, it’s becoming harder to understand what the case for investment is.”
CBI chairman Rupert Soames claimed businesses were being “milked as the cash cow” in Labour’s autumn Budget.
Lord Karan Bilimoria, co-founder of Cobra Beer, told Times Radio this was “a unanimous voice of business” warning of damage.
Facing criticism at the CBI conference, Rachel Reeves insisted there was “no alternative” to the tax rises.
“I have heard a lot of feedback about my Budget but not any alternative suggestions,” she told business leaders.
The chancellor pledged that businesses would not face another similar budget before the next election.
“I’m going to be honest and level with people about the scale of the challenges that we face,” Reeves said. “But we’ve done that now, and businesses can be certain that we’re never going to have to do a budget like that again.”
She warned the public sector would need to “live within its means” with reforms rather than further tax hikes funding future changes.