Work and Pensions Secretary Mel Stride has launched a blistering attack on Labour's economic credibility, warning that their policies could spark dangerous market turbulence and potentially cause a run on the pound.
The senior Conservative minister's comments come as political tensions escalate ahead of the upcoming general election, with economic management becoming a central battleground between the parties.
Economic Stability at Risk
Stride claimed that financial markets would react with extreme nervousness to a Labour victory, suggesting investors have little confidence in Sir Keir Starmer's party to manage the nation's finances responsibly.
"The moment it becomes clear that Labour might be in a position to form a government, I think the markets will be very, very nervous indeed," Stride stated in an interview with The Independent.
Comparisons to Truss Crisis
The Tory minister drew parallels between potential Labour policies and the disastrous mini-budget under former Prime Minister Liz Truss, which caused sterling to crash and borrowing costs to soar in 2022.
While acknowledging Labour wouldn't propose anything "as remotely daft as that," Stride insisted their spending plans would still unsettle financial markets and damage economic confidence.
Labour's Response
Shadow Chancellor Rachel Reeves has consistently positioned herself as a fiscally responsible alternative, promising to maintain strict spending rules and avoid unfunded commitments.
Labour sources have dismissed Stride's warnings as desperate political rhetoric from a government trailing significantly in the polls.
Budget Showdown Looms
The economic debate intensifies as Chancellor Jeremy Hunt prepares to deliver what could be the final Budget before the election, expected to include tax cuts aimed at boosting Conservative prospects.
Both parties are positioning themselves as the guardians of economic stability, with the outcome likely to determine Britain's financial direction for the coming years.
