£40BN TAX RAID 'DISASTER' IS KILLING GROWTH

RACHEL Reeves was branded a “disaster” after the economy was downgraded again yesterday.

- Martyn Brown Political Editor

Global experts slashed their growth expectations for the next two years and warned of looming price rises from Donald Trump’s trade war.

It is another humiliation for the Chancellor, days ahead of her crunch spring statement, and lays bare the negative impact of her autumn Budget. Millions of hard-pressed households and firms face being hit by a £40billion tax raid next month, including a National Insurance increase.

The Office for National Statistics has said the economy is shrinking, with some analysts warning a recession is possible. Shadow Chancellor Mel Stride attacked Labour’s mishandling of the economy and claimed the "warning lights are flashing red".

He said: "It should come as no surprise that the UK's growth forecasts have been downgraded after Labour has trashed the economy.

"Things are set to get tougher, with Labour's jobs tax lurking on the horizon. With nine days to go until Labour's emergency Budget, the warning lights are flashing red.

"This is the latest embarrassment for Keir Starmer after he made growth his No1 mission." Reform UK MP Richard Tice said: "Rachel Reeves's blunder Budget has been a disaster for the UK economy. Higher taxes and plummeting business confidence is a recipe for economic disaster. We're seeing this plainly in today's OECD figures."

Struggles

The Organisation for Economic Co-operation and Development downgraded its UK growth projections for 2025 and 2026.