UK's Financial Condition Reaches its Lowest Since 1945, Says New Chancellor

Rachel Reeves has criticised the Conservatives for damaging the economy during their 14-year term.

Rachel Reeves, the newly installed chancellor of the exchequer, has stated that the recent Labour government in the UK is dealing with the country's most challenging economy since the Second World War. Reeves took control of the country's financial affairs following Labour's victory in recent general elections, which saw them secure 412 of the 650 seats in the House of Commons, thereby ending the 14-year reign of the Conservative Party.

Reeves announced at the Treasury on Monday, "I have persistently notified that the eventual winners of the general election would find themselves facing the most difficult scenario since the Second World War."

She added, "The aftermath of 14 chaotic and economically irresponsible years is what we're up against now." She criticised her Conservative predecessors for their "political self-interest," describing them as a "government that prioritised party over country."

She relayed, "Fresh Treasury analysis, which I sought over the weekend, reveals that the UK economy would have exceeded £140 billion [$179 billion] had it grown at the average OECD [Organization for Economic Co-operation and Development] rate over the past 13 years." Reeves pointed out that Tory policies resulted in a loss of £58 billion ($74 billion) from the UK budget in terms of potential tax revenue in 2023 alone.

The new chancellor noted, "Such funds could have breathed new life into our schools, hospitals, and other public services." She added, "Sustainable growth necessitates difficult decisions - decisions previous administrations have often recoiled from."

Reeves pledged to break away from "political timidity," in addressing the UK's outdated planning system. She affirmed her commitment to reform, pledging no increments to National Insurance, and the basic, higher, or additional rates of Income Tax, or VAT.

As per The Guardian, under the stewardship of various Conservative governments for over a decade, the UK's deficit swelled to the highest level since the 1960s. The country faced severe struggles linked to Brexit, the Covid pandemic, and a cost of living crisis. The International Monetary Fund anticipates the UK's GDP to grow by 0.5% this year.