Sir Mel Stride has said Labour's "crazy employment legislation" is one of the key reasons a record number of Britons have left the UK since Labour came to power.
Speaking to GB News, the Shadow Chancellor laid blame on Rachel Reeves and the Government for their "choices" which have led to the "current economic environment" in the UK.
Reacting to today's inflation figures, which dropped to 3.6 per cent, Mr Stride said Britons will continue to be in for a "nasty shock" when they enter the supermarkets.
The Chancellor has also admitted there is "more that we need to do" to tackle the "cost of living challenges".
Rachel Reeves has been blasted for her 'crazy employment legislation' for 'driving people out' of Britain
|PA / GB NEWS
Reacting to the inflation figures, Mr Stride told GB News: "Well, it's good, of course, that the headline rate is coming down a bit. It has to be said that we are still the highest rate of inflation in the G7 this year, according to the IMF, and will be next year.
"And of course, within those inflation numbers, food inflation has actually gone up from 4.5 per cent to 4.9 per cent, so many people going to their supermarkets and reaching the checkout are going to continue to be in for a nasty shock, I'm afraid."
Laying blame on "Government choices" for the state of Britain's economy, he added: "And this is because of the Government's policies.
"It's the Government's choices that have led us here in terms of additional taxation on businesses being passed through to higher prices and of course, borrowing and spending vast amounts of money that's keeping inflation higher than it otherwise would have been."
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Rachel Reeves has reacted to the latest inflation rates, declaring there is 'more that we need to do to tackle the cost of living challenges'
|POOL
Laying out a "viable alternative" to Ms Reeves's looming Budget statement, Mr Stride explained: "The saddest thing of all is that there is a viable alternative to this, which is what we have set out, which is to get on top of Government spending.
"And if you get on top of Government spending, then you have the space to start getting taxes down, particularly taxes on business. And if you do that, of course, that's a downward pressure on inflation, and it makes it easier for everybody as well as growing the economy and supporting jobs."
Asked by host Ellie Costello about the surging number of Britons leaving the UK, the Shadow Chancellor took aim at Labour's "crazy" employment legislation, which is impacting British business.
He said: "Well, I think it's indicative, I'm afraid, of the kind of economic environment, in particular, the business environment we’ve got here in the UK. We know that around 16,000 for example, very high net worth individuals have left our country, and they've gone to places like the United Arab Emirates and Monaco, Milan etc, that have a much more favourable tax regime.
Mr Stride told GB News that there is a 'viable alternative' to the Government's handling of the economy
|GB NEWS
"Now some people may say, ‘well, who cares about them?’, well, we should do because the tax that they have been paying will require probably between a third and a half of a million people on average earnings just to cover the tax loss that has gone out the door."
Criticising the Labour legislation on employment, Mr Stride concluded: "The answer to this, Ellie, is to get taxes over here down and get rid of some of this crazy employment legislation.
"This crazy employment legislation that's coming down the line from this Government just makes it harder to create businesses, to create jobs, to have a vibrant economy.
"And that's a critical part of the story as to why too many people that we really actually want to be staying here to help the economy are actually leaving."
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