Shadow Chancellor Mel Stride has issued a stark warning about impending tax increases set to hit workers in April, claiming the Government has damaged Britain’s economic prospects.
Speaking on GB News, Stride cautioned that people will soon be “paying the price” of low growth and high taxes.
The Shadow Chancellor delivered his criticism during an appearance on Breakfast with Eamonn Holmes and Ellie Costello, where he highlighted concerns about the upcoming tax year.
“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.
Mel Stride hit out at Chancellor Rachel Reeves and claimed the economy is ‘not going anywhere’
GB News / POOL
He warned that the consequences would be felt through “lower wages and lower living standards going forward.”
Stride outlined specific concerns about the April tax changes, particularly focusing on National Insurance modifications.
“In the first part of April, when the new tax year comes along, that’s when the tax increases will then bite,” he explained.
The Shadow Chancellor highlighted two key changes: an increase in the National Insurance rate for employers and a reduction in the payment threshold.
He warned these changes would force more low-paid and part-time workers to pay National Insurance for the first time.
“That, of course, will have a disproportionate impact on younger people, on leisure and retail in particular, that require, that rely on those kinds of workers,” he said.
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Without a significant Government U-turn, Stride predicted a challenging economic outlook. Stride attributed the current economic situation to specific government actions.
“They talked the economy down after the general election and destroyed business confidence,” he said.
He pointed to what he called a “terrible, disastrous budget” that increased taxes, particularly on businesses and National Insurance.
These decisions were “at the root of what you’re seeing at the moment,” according to the Shadow Chancellor.
Stride told GB News that Britons are going to ‘pay the price’ for Labour’s lack of growth
GB News
He emphasised that he took “no pleasure whatsoever” in delivering this assessment.
Recent economic indicators have reinforced his concerns about growth prospects.
“We saw the Bank of England actually having their forecast for growth for this year, for example, in the last week alone,” Stride noted.