Rachel Reeves’s good intentions mean nothing against rising inflation, meagre growth and falling employment, writes shadow secretary of state for work and pensions Helen Whately

One thing that I don’t think can be doubted about Rachel Reeves is her intentions. Like any Chancellor, of course she wants to achieve growth, prosperity and higher living standards. Of course she wants investment to increase, government debt to fall and unemployment to decline.

The problem isn’t her intentions. It’s that every single action she has taken has undermined them.

Labour progress report: Inflation up, growth down

Let’s start with inflation. Her stated aim is to hold it at the two per cent target she inherited from the last government. Instead, she has pumped £70bn a year extra into public spending – including huge public sector pay rises – and inflation has risen nearly a per cent since Labour have been in office.

This has caused interest rates to stay higher for longer. That’s not just a problem for businesses and households. As we found out last week, higher government borrowing costs have contributed to wiping out her entire fiscal headroom and left a £14bn hole in her figures.

Then you look at economic growth, which she has described as “the number one mission of this government”. Even in that statement there is a fundamental misunderstanding. Because it is not government that creates growth, it’s businesses.

Instead of supporting them, she has slapped huge taxes on them. Billions in National Insurance rises, huge hikes in Business Rates. Taxes that prevent businesses from actually investing in things that create growth.

At the same time, she spent her first six months in office talking down the UK economy for political gain. We have gone from the green shoots of recovery to the lowest level of business confidence on record outside of the pandemic, all since Labour have been in office.