I find it disappointing after their many promises before the general election that they would put country before party, that the stark reality is that we have the complete opposite, with a Labour Government in office who keep putting their own political interest ahead of the collective interests of our country. 

Ever since taking office six months ago last July, the Labour Government has deliberately talked down our economy and the state of the public finances.  Make no mistake, Labour shamefully did this to provide political cover to break their election promises on taxation, borrowing and spending.

Unfortunately, lessons have not been learned or simply ignored, from governments of the past who made similar economic mistakes.  Older readers will remember the 1970s and Labour’s disastrous economic policies, which I fear are being repeated by Keir Starmer and Rachel Reeves.

We’ve just had a week of serious turmoil on the financial markets, as investor confidence in the UK government’s economic and fiscal policies evaporates.  I have real apprehension as to what this coming week will bring.  

The financial markets upheaval already means the Chancellor now faces a £50 billion bill for higher debt interest payments over the next five years, after bond market nerves sent government borrowing costs soaring. 

Among the many bad moves in her now infamous 30 October budget, Chancellor Rachel Reeves recklessly gambled by leaving a historically tiny buffer of £10 billion for this year when trying to balance day-to-day spending with tax receipts coming in.  That reserve has virtually already gone after the cost of government borrowing soared to a 27-year high and the pound slumped against the dollar in a turbulent start to the year on financial markets.  Even the master of disaster Gordon Brown didn’t manage to send government borrowing costs to the high levels we now see. 

The Office for Budget Responsibility is expected to reduce their forecast of 2% growth this year, which will further weaken the government’s already shaky fiscal position.  If inflation figures released this week are bad, then interest rates will stay higher for longer.  Sadly, tough times are ahead.   

Councillor Duncan Crow, Leader of Crawley Borough Council Conservative Group

15th January 2025