The pound has dropped to its lowest level for over a year and UK government borrowing costs continue to soar as concerns about the public finances and the economy grow.
Sterling has fallen in value after UK 10-year borrowing costs rose again today, surging to their highest level for 16 years.
In briefings overnight, reports are that in response to their own fiscal mismanagement, the Labour government is now threatening to impose severe cuts.
It comes amid growing fears of stagflation in the UK economy on Keir Starmer's watch - with concerns among economists that the UK faces a toxic combination of stagnant economic growth, rising prices and increased unemployment.
Kenneth Gibson MSP said:
"Labour promised change but has now lost control of the economy.
“Public services and the most vulnerable mustn’t pay the price because the Labour Chancellor inability to manage the public finances.
“Chancellor Rachel Reeves MP has already targeted pensioners with her cuts. Others who need support can’t be the next target of her austerity agenda.
“Before the UK General Election Sir Keir Starmer MP and Anas Sarwar MSP told us ‘read my lips: no austerity under Labour.’ That promise now looks increasingly empty.
"Voters were promised better times but instead the UK economy is flatlining, prices are rising, energy bills are soaring, and borrowing costs are through the roof.
"Brexit Britain is broken and Sir Keir Starmer's failing government is making things even worse.
“The Prime Minister and the Chancellor must urgently get a grip and put the economy back on track instead of forcing families and public services to pay the price because of the economic damage they inflicted in their autumn budget."
Notes:
Pound falls further as UK borrowing costs soar
Keir Starmer: "I can say no return to austerity."
Read my lips: No austerity under Labour."
ENDS
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