Rachel Reeves warns of “grave impact” of Spring Statement

Rachel Reeves warns of grave impact of Spring Statement
Credit: PA / GB News

UK (Parliament Politics Magazine) – Shadow Minister Victoria Atkins slammed Labour’s economic policies, saying most of the £20bn will go to NI hikes and pay rises instead of frontline services.

Victoria Atkins has accused the government of misleading the public on NHS funding, claiming the pledged budget is being used for National Insurance hikes and salary increases instead of frontline services.

What did Victoria Atkins say about Rachel Reeves’ budget?

During an interview on GB News, she criticized Rachel Reeves‘ November budget, accusing it of failing to prioritize real economic solutions. Ms Atkins accused Labour of misleading the public about NHS funding.

She stated,

“This £20 billion they have been talking about over two years, the overwhelming majority of that money, is in fact, going to go on, guess what, paying the National Insurance hike and the pay rises that this Government promised without productivity reform.”

The Shadow Minister raised concerns that

“very little extra is, in fact, going to the frontline services that we all want to see properly funded and looked after.”

Ms Atkins accused Labour of fabricating figures regarding their economic inheritance, stating that the Office for Budget Responsibility “can’t legitimise” them.

She referenced remarks from NHS England’s former leadership to back her claims on how NHS funds are being allocated.

Ms Atkins warned,

“We mustn’t allow the Labour spin doctors to skew our cold, hard analysis of what is happening with the figures here because the story they give is not the story that we are experiencing.”

What impact did Rachel Reeves’ budget have on rural communities?

Victoria Atkins raised concerns over Labour’s economic decisions, stating they have severe consequences for rural communities. 

She stated,

“As a direct result of the decisions that Rachel Reeves made in her November budget, whether it’s the family farm tax, whether it’s the family business tax or the dreaded National Insurance hike, there are already very, very grave impacts being felt across the rural economy.”

The Shadow Minister criticized Labour’s fiscal policies, describing the latest announcement as “a glum day for the economy.”

She argued that the policy “slashes growth,” led to “rising unemployment each year,” and resulted in “substantially higher costs” for all.

Ms Atkins slammed Labour for breaking another promise, reminding that “before the election, they said there shouldn’t be a penny cut in welfare.”

She stressed the need for a balanced welfare reform, stating,

“We want to help encourage people into work if they’re able to, but we fully recognise that not everybody can, and that’s why the safety net is there,”

adding,

“What they’ve done the last couple of weeks, and the worry they’ve put people through, I’m afraid, is not having that impact.”

What did Labour MPs say about Rachel Reeves’ welfare cuts?

The chancellor is facing backlash from his party MPs over welfare cuts they describe as “devastating” and “unacceptable.” They argue that the government’s own analysis indicates the cuts will leave more than 3 million households struggling financially and push 250,000 people into poverty.

Official figures reveal that 3.4 million households will suffer an annual reduction of £1,720 on average. Among them, 800,000 PIP recipients are set to lose around £4,500 each year.

Debbie Abrahams, the Labour head of the work and pensions select committee, told the Commons,

“All the evidence points to the fact that the cuts to health and disability benefits will lead to increased poverty, including severe poverty, and worsened health conditions. How will making people sicker and poorer help to drive our economy up and get people into jobs?”

Neil Duncan-Jordan, the MP for Poole, stated,

“We are talking about people’s lives here – my constituents are frightened.”

He added,

“This policy will fuel the social determinants of poverty that ultimately create further pressure on the services the chancellor is trying to cut. And we know cuts won’t bring growth, they won’t create jobs – they will only create poverty.”

Rachael Maskell, the Labour MP for York Central, said,

“The devastating impact of people losing essential income will fall on disabled people. I will not accept or vote for measures that will put people at risk or push deeper into poverty.” 

One backbencher stated,

“The parliamentary Labour party needs to be raising its voice about the OBR and the fiscal rules. This is driving our constituents into poverty and destroying faith in a Labour government to make tiny numbers on a balance sheet add up.”