Chancellor’s economic plans will reward ‘already wealthy’, warns Rachel Reeves

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Is Truss and Quasi Quarteng are two “desperate gamblers who chase a losing race” with an economic plan to reward the “already wealthy”, according to shadow chancellor Rachel Reeves.

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The Labor frontbencher took aim at the prime minister and the chancellor as they warned that the government had served a “menu without prices”, and questioned why Mr Quarteng was “hidden” by not allowing an immediate independent forecast of his plans. For what have you got?

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He said Mr Quarteng’s statement to the Commons had acted as a “widespread demolition” of the Conservatives’ record in power over the past 12 years.

Ms Reeves told lawmakers: “We’ve had six so-called plans for growth from the Conservatives since 2010 – here they are, each one of them a litany of failures.”

He said the government lacked a credible plan to provide development, adding: “The prime minister and the chancellor are like two desperate gamblers chasing a losing race in a casino.

“The argument given by the Vice Chancellor is not a great new idea or a gamechanger, as the Minister said, as much as he wants us to think so.

“What this plan adds is keeping corporation taxes where it is today, and getting National Insurance contributions back where they were in March. Some new plans.”

She continued: “It is all based on an age-old ideology which says that if we only reward those who are already rich, the whole society will benefit.

“They have decided to replace leveling up with trickle down.

“As (US) President Biden said this week, he is sick and tired of trickle-down economics. And he is right to be. It is discredited, it is inadequate and it will not open the wave of investment that we need.”

Ms Reeves said evidence showed lower corporation tax rates “are not the best way to boost investment and productivity”, adding that Labor would use targeted investment allowances and “scrap outdated and unfair business rates”. who damage our high streets and small businesses”.

Ms Reeves said it would be replaced by a “system appropriate for the 21st century”.

On home ownership, Ms Reeves said: “These stamp duty changes have been tried before.

“Last time the government did this, a third of the people who benefited were buying a second house, a third house or a rental property.

“Is this really the best use of taxpayer money when borrowing and debt are already so high?”

She also said: “The VC has made it clear what his priorities are today – not a development plan, a plan to reward the already wealthy.

It is a plan for a recession, for debt on a volatile trajectory and an almost inevitable cut in the public sector to come.

“A return to the trickle-down of the past, back to the future, not a brave new era.”

Ms Reeves criticized the government for not having an independent forecast from the Office for Budget Responsibility (OBR) regarding the statement, adding: “Never has the government borrowed so much and explained so little.

“Economic institutions matter, yet this government has undermined the Bank of England, sacked the respected Permanent Secretary at the Treasury and silenced the Office of Budget Responsibility.

“It’s no way to build trust, it’s no way to build economic growth.”

Ms Reeves concluded by saying that conservatives cannot solve the crisis of living, adding: “Conservatives are a crisis of the cost of living. And the country cannot tolerate them any longer. ,

Mr Quarteng said it was the “biggest fantasy I’ve ever heard” to suggest that Labor believes in wealth creation.

He said: “You cannot develop the economy if you keep taxing families. You can’t grow the economy if you see trade as the enemy, “you can’t tax your way to prosperity”.

“You cannot help workers by increasing their taxes. And let alone defame the British workers, the measures we have taken are reducing the burden on our workers and our people.”

He added: “We have to unleash the creative energy of this country and that’s what we are 100% focused on doing.”

SNP’s Treasury spokeswoman Alison Thewlis said: “This is a recessionary plan, for debt on a volatile trajectory and an almost inevitable cut in the public sector to come.

“Actively cutting taxes permanently and spending eye-watering amounts to fix a failing energy market, while inflation soars, interest rates rise and recession strikes, will not lead to growth, This will create economic chaos.

“What he has said today will give no assurance and give hope to the common people, those struggling to come back to a broken Britain.”

He said: “Scotland is looking for a different path. Scotland needs independence.”

The chancellor said “Scotland does not need to re-heat socialism from the SNP”.

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