Labour now 'flirting with recession' warns peer

BRITAIN is “flirting with recession” and Labour’s economic policies are “catastrophic for growth”, Conservative peer Lord Moynihan has said in a blistering attack.

- By Lucy Johnston

Speaking after last week’s Spring Statement by Rachel Reeves, the peer accused the Chancellor of trying to use businesses as “milk cows” by hiking taxes and increasing red tape.

At the same time, her party has been dishing out “inflation-busting pay rises” to its public sector allies, he pointed out.

The British businessman and venture capitalist, who was at the launch of his new book, Return to Growth, added: “Every policy has led to the opposite of growth.

“Last year’s Budget was fairly punitive on business – we warned in the Lords that growth would be crushed.”

Last week, the Office for Budget Responsibility predicted just 1% growth this year – half of its original forecast – but Lord Moynihan says even this is optimistic.