𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Rachel Reeves was accused of wrecking the economy after tens of thousands of hospitality firms were forced to shut under her watch. More than 33,000 businesses closed in the 15 months following the Chancellor’s first £40billion tax-raising Budget – the equivalent of 70 every day.

Critics said the “disastrous” numbers show that Labour’s policies were choking the economy long before the Middle East conflict erupted. Writing in the Express, Tory shadow Chancellor Sir Mel Stride, said: “Rachel Reeves has pushed up borrowing, spending and taxes, yet delivered stagnant growth. We are getting poorer.” Official figures reveal that a staggering 33,005 accommodation and food businesses closed down between October 2024 and December 2025. These include pubs, restaurants, cafes and hotels.

Sir Mel added: “Nowhere is our economic pain felt more than on our high streets. Behind every closure are lost jobs, a shuttered pub, a struggling family.

“Our communities are being hollowed out in real time because businesses are being squeezed from every direction by crippling taxes, punitive business rates, soaring energy bills, and endless red tape.”

In her Halloween 2024 budget Ms Reeves clobbered households with massive tax rises as well as hiking National Insurance contributions for employers.

Experts partly blame that decision for rising unemployment, which is now at its highest level for five years.

Data from the Office For National Statistics shows that hospitality businesses were hit particularly hard.

John Longworth, Chairman Independent Business Network of family businesses and former Director General of the British Chamber of Commerce, said: “The government’s economic policies of tax and spend have been a disaster for British business and jobs.

“Worse still they continue with the fantasy that the state is the answer when it is the problem. “Another three years of Labour incompetence and the economy will be a wreck.

“They urgently need to u-turn and adopt free market policies , secure supplies of cheap energy from oil and gas and cut welfare and taxes, especially for business.”

Conservative Peer Lord Mott, who unearthed the figures, said: “Hospitality has been one of the largest employers and fastest growing sectors in the UK.

“But sadly, the warnings given to the government on the impact of hiking the jobs tax, increasing costs and expanding red tape appear to have come true.

“It’s vital that the government now gets behind businesses and makes the pursuit of growth more than just a soundbite.”

It comes as a devastating new economic forecast shows Britain will be hit harder than any other G7 country as the Middle East conflict rages, a new forecast shows.

Donald Trump’s war with Iran has delivered an economic hammer blow to the UK with a hit to growth and surging inflation.

The outlook could force Ms Reeves to hike taxes or cut spending at this year’s Budget to balance the books.

The Organisation for Economic Co-operation and Development in its interim report says the UK economy will grow by just 0.7% this year.

That marks a sharp 0.5% downgrade from when the international body delivered its last outlook in December.

This puts the UK as the second-lowest growing country in the G7, behind only Italy.

Their forecast remains unchanged for next year with growth expected to be 1.3%.

The Paris-based experts also expect inflation to average 4% this year, a 1.5% increase on the forecast at the end of last year.

It said the Iran war will “test the resilience” of the global economy outlining how prolonged energy prices will lead to higher inflation and business costs hitting growth.

The OECD said higher energy costs and supply-chain disruptions come at a time when inflation remains above target in the UK.

They also say that central banks, such as the Bank of England, will need to “remain vigilant” and ensure that inflation expectations stay “well anchored”.

It could mean interest rate hikes to keep inflation at the Bank’s 2% target.

Bank of England governor Andrew Bailey last week said he “stands ready” to act.

For the global economy, they point to rising energy costs and the unpredictable nature of the conflict “will raise costs and lower demand.”

Rachel Reeves said: “The war in the Middle East is not one that we started, nor is it a war that we have joined. But it is a war that will have an impact on our country.

“In an uncertain world we have the right economic plan. The decisions we have taken have put us in a better position to protect the country’s finances and family finances from global instability.

“Our economic plan means going further to build a stronger more secure economy.

“That means going further on our three big choices: empowering regional growth, embracing AI and innovation, and establishing a closer relationship with the EU.”

Reform UK’s economic spokesman Robert Jenrick said: “People are struggling right now with rising prices, but the Chancellor is sitting on her hands.

“Rachel Reeves should help ease the pain by cutting taxes on fuel and energy bills, but instead she’s choosing to rake in tens of millions of pounds each week. What is she waiting for?”

The Treasury has been contacted for further comment.