Rachel Reeves responds to IFS analysis showing inflation will wipe out increases to public spending

Rachel Reeves MP, Labour’s Shadow Chancellor of the Exchequer, responding to new IFS analysis which shows higher inflation will wipe out at least a quarter of the real terms increases to public service spending announced back in October, said:

"The government has allowed the cost of living crisis to spiral out of control since September - and now will make it even worse with an unfair tax hike.

"The Conservatives should halt their National Insurance hike in April – and they must look again at Labour’s proposal for a one-off windfall tax on oil and gas producers to cut household energy bills by up to £600.

"But we’ve also got to get out of this Tory high tax, low growth trap that is making our economy less resilient and leaving public services weakened.  

"That means growing our economy – by buying, making and selling more in Britain and through our Climate Investment Pledge, Labour will get us firing on all cylinders."