Nick Ferrari accused Labour of not delivering on LBC this morning (Image: LBC)
Keir Starmer and Rachel Reeves faced fresh accusations of crashing the economy as LBC host Nick Ferrari clashed with a Labour minister.
Transport Secretary Heidi Alexander defended the Government’s record after GDP fell by 0.1 per cent in October, following an identical slump in September.
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The shock data covers the period just before the Chancellor’s tax-hiking bombshell Budget with economists predicting worse to come.
And new projections from the Bank of England showed that economic growth will be worse over the final three months of 2024 than it had previously predicted.
READ MORE: Furious Nick Ferrari threatens to cancel interview as minister refuses to answer
'We are not going to be able to turn around 14 years of stagnation and decline in not much more than 14 weeks since the general election.'
Economic growth will 'take some time to take effect', Labour's Heidi Alexander tells @NickFerrariLBC. pic.twitter.com/ZBpnfFJc8i
— LBC (@LBC) December 20, 2024
Mr Ferrari blasted: “There is no growth, you’re not delivering in this area, are you Secretary of State?”
Ms Alexander responded: “The Office for Budget Responsibility is still predicting some growth this year. It’s not as much as we would like. We do need to get the economy firing on all cylinders and we need to get more money in people’s pockets.
“Some of the things we have committed to doing, which are going to make a difference, like the planning reforms so we can get the construction sector really operating well, building the infrastructure.
“We’ve also set up the National Wealth Fund, GB Energy to crowd in some of that private sector investment.
“We are not going to be able to turn around 14 years of stagnation and decline in not much more than 14 weeks since the general election.”
The Bank of England’s Monetary Policy Committee said it is now expecting zero gross domestic product (GDP) between October and December, weaker than the 0.3% growth it had forecast in November.
Concerns over the new growth projections, sluggish demand and a weakening jobs market were enough to encourage three members of the MPC to vote for interest rates to be reduced.
The Chancellor insists her big spending Budget will help revive the dismal growth results - a flagship Labour pledge.
But businesses have warned her sweeping tax raids - yet to kick in - will force them to make cutbacks on staff and investment.
Government borrowing fell to ￡11.2 billion last month, the lowest November figure in three years, as tax receipts rose and debt-interest payments fell sharply, according to official data.
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The Office for National Statistics (ONS) said public sector net borrowing was ￡3.4 billion lower than the same month last year, in a boost for chancellor Rachel Reeves.
Economists had predicted ￡13.3 billion of borrowing for November.
The new figures showed that the cost of servicing Government debt fell to ￡3 billion for the month - ￡4.7 billion down year-on-year and the lowest November figure in five years.
This was largely because of recent falls in the retail price index, a measure of inflation which tracks the prices of goods in shops, but which also dictates the cost of some inflation-linked bonds.
While departmental spending, welfare payments and other public services spending rose, the fall in the cost of servicing the national debt was enough to bring down the overall borrowing figure.
Jessica Barnaby, ONS deputy director for public sector finances, said: "Borrowing this month was over ￡3 billion less than this time last year and the lowest November borrowing for three years.
"Central government tax receipts grew compared with last year, while increased spending on public services and on benefits were offset by lower debt interest payable."
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Inflation is back with a bang and the experts agree - Rachel Reeves is making it worse
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756 Comments
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7 Comments
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Chief secretary to the Treasury Darren Jones added: "When we were elected, we inherited crumbling public services and crippled public finances, with a ￡22 billion black hole.
"This Government will never play fast and loose with the public finances.
"Now we have wiped the slate clean, we are focused on investment and reform to deliver growth, delivering the plan for change, to put more money in people's pockets, get the NHS back on its feet, rebuild Britain and secure our borders in a decade of national renewal."