Labour says UK ‘out of step’ with other nations in recovery efforts
THE UK is an “outlier compared to other countries” in its approach to rebuilding the economy in the wake of the coronavirus crisis, according to the Shadow Chancellor.
Labour’s Anneliese Dodds criticised the management of public finances since 2010 and said this meant the UK was not in a “strong position” when the pandemic hit.
She warned against ending the £20-per-week Universal Credit uplift and increases to council taxes, as these will hit household spending when the economy is “still building back up again”.
Appearing at a virtual event held by the Reform think-tank, the Shadow Chancellor was asked when tough decisions should be made. “In terms of the more immediate question of how we deal with current circumstances, I would say that the UK is an outlier compared to other countries,” she told the event.
“Obviously we have right now a very substantial council tax increase that is impacting on people up and down the country, up to five per cent increase in council tax.
“We have the public sector pay freeze, we of course have the situation with NHS pay that we have been talking about, we also have then in the autumn Universal Credit being pulled back down again by £20 for low income families. They are families who would be spending that money, that would be a time when our economy is still building back up again.”
She said this was not the approach to take, adding: “I do think the priorities are wrong and I do feel that in the UK we are out of step with how many other countries are approaching this.”
Meanwhile, Ms Dodds said during the event that Labour had “repeatedly expressed concerns” about the timing of the income tax threshold freeze.
In his Budget, Chancellor Rishi Sunak announced that the point at which people begin paying income tax will increase by £70 to £12,570 in April, but will be maintained at that level until April 2026.
The Shadow Chancellor faced criticism after she indicated that Labour would support the freeze, with Shadow Foreign Secretary Lisa Nandy later confirming that the party would vote against it.