Reeves: People feel stuck but Britain is not broken

Chancellor says boost for working parents will help growth

- DAVID MADDOX POLITICAL EDITOR

Rachel Reeves has admitted that hardworking people feel “stuck” as economic growth continues to lag and pressure mounts on her to raise new taxes.

In stark comments on the state of Britain’s economy, the chancellor acknowledged that families are “squeezing every penny to make ends meet” and that more needs to be done to help working people “get ahead in life”.

But a defiant Ms Reeves also hit back at critics such as Nigel Farage who claim that “Britain is broken” - insisting she was working to boost the economy and “build a stronger Britain”.

Writing exclusively for The Independent, she said: “Britain isn’t broken, but for working people, it feels stuck. People feel like no matter how hard they work, or how much they put in, getting ahead in life is out of reach, and families are squeezing every penny to make ends meet.”

Ms Reeves made the comments as she unveiled plans to help working parents with the “sky-high cost” of childcare as part of an attempt to break the continuing cost of living crisis.

The announcement is the first in a week focused on education and tackling the migrant crisis, but also part of a wider fightback by Labour to seize the political initiative as it trails Mr Farage’s Reform UK by around eight points in the latest polls.

The chancellor, who is expected to announce the date of her second Budget on Wednesday, has tackled head on criticism that things in the UK are not working for those who put in the effort and insists her childcare funding changes are “just the start”.

“My number one focus is on putting more money in working people's pockets,” she wrote. “The childcare rollout is helping deliver that. The Office for Budget Responsibility (OBR) predicts that - by 2027 - the additional help will get 60,000 parents back to work. That is a huge boost to the economy, which will drive up living standards.”