“This tax-and-spend gamble is like 1970s'

LABOUR'S economic ineptitude will unleash more tax rises and transport Britain back to the 1970s, experts predict.

- By Giles Sheldrick Chief Reporter

They say hardworking families and businesses will be targeted as part of the Chancellor’s doomed tax, borrow and spend plans.

Writing exclusively for the Daily Express today, her Conservative counterpart Sir Mel Stride said Rachel Reeves was following “the same pattern that has marked every Labour government in living memory... tax more, spend more and borrow even more”.

The parlous state of public finances has sparked fears Treasury number crunchers are eyeing a new assault on the middle classes in a desperate bid to balance the books.

The flatlining economy has sparked panic that tax raids are unavoidable when Ms Reeves delivers her second budget late next month or in early November.

After rowing back on plans to slash welfare spending, experts predict she will attempt to plug a black hole of £41billion - or £50billion including fiscal headroom - with an assault on business, pensions, savings and property.

Ideas include cutting the threshold at which small businesses and sole traders have to register for VAT from the current £90,000 turnover to £30,000 in a move that will clobber tens of thousands of traders.

Ditch

The Tories say Labour has driven the UK economy into a ditch by talking it down and taxing the life out of it, while racking up borrowing and killing growth, resulting in higher inflation, fewer jobs and lower wages.

Prices rose 3.8% in the year to July, meaning inflation remains above the 2% target set by the Bank of England.

Meanwhile, sluggish productivity, high housing costs, bills, a slump in living standards and concern about what will be unleashed in the upcoming Budget have created a feeling of Britain being stuck in a “doom loop”.

Asda chairman Allan Leighton said: “There’s no doubt all of this is hitting the pocket of the consumer. And when that happens, that’s not particularly good for anybody.

“I think there’s more gloom than we've seen for a long time.