Rachel Reeves accused of ‘bare-faced lie’ as economic plan torn apart | Politics | News
Rachel Reeves has been accused of telling a “bare-faced lie” as she insists her policies are taking the country in the right direction. The Chancellor posted online that inflation, interest rates down, borrowing are down, and retail sales are up. She also claimed that the UK is the “fastest growing European G7 economy”. “There’s more to do,” she added, “but our economic plan is the right one.”
But journalist Andrew Neil tore apart her statements. He wrote: “You inherited 2% inflation. It doubled in 12 months after you became Chancellor. It is still 50% above the rate you inherited and 50% above target. It should fall to target 2% this summer. So two years to get back to where you started! Whatโs to boast about that?”
He added: “Interest rates have been falling everywhere. UK cuts, which you donโt control, have been fewer and smaller because of your inflation record.
“We still have highest interest rate in G7. The Bank [of England] has made some cuts for the simple reason the economy is flat on its back. Well done.”
On borrowing, Mr Neil said it is “slowly falling from a very high base”.
He added that almost six years after the COVID-19 pandemic-induced recession, Britain is still borrowing around 4% of its GDP, and borrowing costs are the highest in the G7.
The commentator admitted that retail sales were up in recent months, but “weโll see how long thatโs sustained”.
Moreover, Mr Neil said, the hospitality and construction industries are “in crisis”.
“Plus our massive services sector is stagnant,” he added.
Finally, he told Ms Reeves: “UK fastest G7 economy? Thatโs simply a bare-faced lie.
“We grew by 0.1% in Q3 2025; and another 0.1% in Q4. End of.”
This compared with Eurozone GDP being 6.8% higher, with GDP in Germany up by 0.5% – the lowest in the G7.
Meanwhile, the US has the highest GDP growth among G7 economies since just before the pandemic, totalling 14.5% from Q4 2019 to Q3 2025.
In Q4 2025, UK GDP grew by 0.1% compared with the previous quarter. Eurozone GDP increased by 0.3%, with France growing by 0.2% and Germany seeing growth of 0.3%.
