Shadow Chancellor Mel Stride has issued a stark warning about the UK economy, stating that inflation figures are "worse than presented" with the rate staying at 3.4 per cent from April to May.
Speaking to GB News, Stride cautioned that the Government risks creating an economic "doom loop" if it implements tax rises in the autumn.
"It's getting really bad," he said, explaining that the April inflation figure had been revised down to 3.4 per cent, meaning it remained at the same level rather than decreasing.
He blamed the Labour Government's policies, saying "it's all down to this Government" who had increased taxes and National Insurance costs.
Mel Stride warned that inflation figures are 'worse than presented' after dipping slightly in May
GB News
Stride explained that Chancellor Rachel Reeves had completely exhausted her fiscal headroom from the autumn budget.
"She blew it entirely and more," he said, adding that whilst she rebuilt it in spring, most economists expect it to evaporate by the Autumn Budget.
He warned of a dangerous economic cycle ahead: "What we're probably looking at in the autumn, I'm afraid, is tax rises, which gets you into this kind of doom loop," Stride said.
"Because taxes are going up, the economy is slowing. Your headroom is disappearing. You go for more taxes, it slows the economy even more. And that's the vicious cycle."
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GB NewsAddressing Labour's position in recent polling, Stride suggested the public are noticing economic deterioration.
"Most people look at this Labour Government, they see prices going up, they see unemployment going up, which has gone up by 10 per cent. They see growth slowing," he said.
The Shadow Chancellor positioned the Conservatives as the responsible alternative to both Labour and Reform.
"I do think they look at Reform and they question their numbers, and they say, 'look, do these various promises actually add up?'" he stated.
Stride told GB News that Labour fears entering a 'vicious cycle' with the economy
GB News
"We've got to be, as the Conservative Party, the grown-ups in the room, as you term it, the people that are going to be fiscally responsible and get back to the sound management of our public finances."
On immigration, Stride acknowledged that net and illegal migration "were not where they should have been when we left office," but argued the current government is "making it even worse."
He criticised the scrapping of the Rwanda deterrent scheme, which he said the Government abandoned "almost on day one."
Stride emphasised that deterrence is crucial, stating: "If you can have a strong deterrent there, such that when people come over here illegally, they are promptly put on an airplane and taken somewhere else, then they stop coming."
Regarding foreign nationals and crime statistics, Stride said: "We need to know what the truth is. This is what this national inquiry must now expose."
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