Shadow Chancellor Sir Mel Stride has launched a blistering attack on Rachel Reeves, claiming that spikes in Britain's national debt under her tenure could have fully funded the country's defence shortfall. New analysis reveals that the surge in borrowing costs nearly matches the amount needed to meet NATO commitments.
Debt Interest Soars by £24bn
Conservatives say the annual debt interest bill will be some £24 billion bigger by the end of this Parliament than before Reeves delivered her first tax-hiking Budget. Sir Mel accused the Chancellor of 'unforgivable profligacy,' stating: 'Debt interest is continuing to soar on her watch, thanks to reckless borrowing and high inflation.'
Every pound wasted on servicing Britain's ballooning borrowing, he argued, 'could have gone to other priorities, such as the urgent need to boost defence spending where Labour have utterly failed to meet their commitments.'
Bond Market Warning
Sir Mel also warned that 'the bond markets are charging us more to borrow than any other G7 country – in fact, more than countries like Greece and Morocco.' Speaking to the BBC, he added that Reeves had borrowed 'about a quarter of a trillion pounds across the Parliament,' leaving behind a 'low growth economy that is very fragile.'
Reeves Defends Record
The Chancellor defended her record, insisting she had 'delivered quite radical change' and restored 'credibility to the economy, and to Labour's economic policy.' She claimed the next Prime Minister, Andy Burnham, would 'take over an economy that is much stronger than the one I inherited from the Conservatives.'
Reeves also asserted that pensioners were 'better off after two years of this Labour government,' despite her Budget dragging many into tax for the first time.
Criticism of Burnham
Sir Mel warned little would change under a Burnham-led Labour Party, saying Mr Burnham 'clearly is going to lean more into tax, more into borrowing.' The Tories accuse Reeves of doing 'untold damage' to firms by piling on taxes and strangling growth.
