𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Rachel Reeves has been accused of “gross mismanagement” of the economy by the Tories as she gave a Commons update amid the Iran war. Speaking on Monday afternoon, the Chancellor warned that the Middle East conflict is “likely to put upward pressure on inflation” over the coming months.

But Shadow Chancellor Sir Mel Stride insisted that her decisions have left the UK “more vulnerable” to the economic impacts of the crisis. The Conservative frontbencher said: “Her gross mismanagement has left us far more vulnerable than would otherwise have been the case.

“Inflation was bang on target when we left office, but thanks to her choices, it rose back up to almost 4% last year, the highest in the G7 – and inflation remains elevated. That is far from ideal, given the threat of a significant further spike in energy prices.

“And of course, extraordinarily, the Chancellor has just now reconfirmed that the Government will press ahead with a rise in fuel duty later this year.

“And borrowing is running higher than was forecast when the Government took office. We are spending well over £100billion a year on debt interest alone. That leaves us far more vulnerable to rising borrowing costs.

“And the Government, of course, is continuing to impose ruinously high taxes on our oil and gas sector and choosing to rely on imports, instead of maximising our own domestic energy supply.

“That is proving to be an incredibly short-sighted approach, but as she has just told us, there will be no change in direction. That is the wrong choice.”

Speaking in the House of Commons following her meeting with G7 finance ministers, Ms Reeves defended her handling of the economy.

Ms Reeves said: “I am clear-eyed about my response to the current situation.

“My economic approach will both be responsive to a changing world and responsible in the national interest.

“The economic impact of the situation in the Middle East will depend, of course, on its severity and its duration.

“The movements that we have already seen are likely to put upward pressure on inflation in the coming months.”

Ms Reeves said she was ready to support “a co-ordinated release” of international oil reserves to ease the economic shock of the crisis and called for action to “guarantee the security of vessels passing through the Strait of Hormuz”.

She added: “I want to ensure the country that the fundamentals of Britain’s economy are strong.

“Every step that I have taken since the election has built our national resilience.

“Stability in the public finances, investment in infrastructure in both defence and energy security, and reform to our economy.”