economic outlook has not deteriorated

RACHEL Reeves sensationally claimed the economic outlook has not deteriorated as she defended the winter fuel U-turn.

- 

The Chancellor yesterday repeated her claims she had had to slash the benefit for millions of pensioners due to a £22billion black hole in the nation's finances.

Labour faced ridicule after they reversed the decision last week, saying economic conditions had improved enough.

Ms Reeves rejected warnings by Michael Knowles the economy was getting weaker amid falling growth forecasts, rising inflation and unemployment.

Business leaders have blamed the Chancellor's decision to increase employers' national insurance contributions, as well as Donald Trump's tariffs, for a 0.3% fall in GDP during April.

The figures came one day after Ms Reeves boasted of “fixing the foundations of our economy” and embarked on a £300billion spree in her Spending Review.