Former Prime Minister Tony Blair has called for a "fundamental reset" to the UK economy in a scathing attack on Chancellor Rachel Reeves's tax decisions.
In an open letter to the Labour Government and the country, Mr Blair urged MPs to avoid replacing Prime Minister Keir Starmer amid global geopolitical headwinds that risk destabilising Britain.
Posting on The Tony Blair Institute website, he argued that ministers should have acknowledged from the start that certain commitments had become economically impractical once Labour returned to power.
The ex-PM explained: "The priority is growth. That comes with a vibrant private sector which has suffered years of economic instability."
Tony Blair has criticsied the Chancellor's record in office
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The former Labour leader was particularly critical of the decision to raise National Insurance rather than VAT to address the budget shortfall.
"Either tax increase would have been unpopular. Only one undermined business confidence," Mr Blair wrote.
He suggested abandoning earlier pledges would have been "painful but bearable" given initial business goodwill towards the Government.
Notably, Mr Blair also took aim at the Ms Reeves's most recent Budget, which he suggested gave the impression that tax rises were being used to cover increased welfare expenditure.
Rachel Reeves announced plans to raise the National Living Wage and National Minimum Wage In her Budget on November 26 | GETTYLATEST DEVELOPMENTS
Sir Tony Blair's thinktank made the plea to the Government | REUTERSThis approach, he argued, was politically tone-deaf given widespread public perception that benefit costs are already excessive.
He acknowledged that the Chancellor deserves recognition for broader macroeconomic achievements, but maintained that the specific policy choices have generated "headwinds, not tailwinds" for the business community.
Mr Blair called for a "fundamental reset" of the Government's approach, arguing that incremental adjustments would prove insufficient to transform Britain's fortunes.
At minimum, he urged ministers to mitigate the damage from existing policy changes and revisit environmental commitments.
The VAT changes stem from Chancellor Rachel Reeves’ 2024 Budget | PAThe former Prime Minister specifically targeted elements of the net-zero strategy, advocating for the removal of policies that favour clean energy at the expense of affordability.
Mr Blair added: "Remove those parts of the net-zero agenda which prioritise clean energy over cheaper energy."
He noted that the Government must ensure "the actions match the words on growth."
GB News has contacted Number 10 and the Treasury for comment.