INCOMING Prime Minister Andy Burnham has been warned not to increase taxes as the economy flatlines.
Shadow Chancellor Sir said higher taxes had choked the economy and urged against a similar strategy.
Andy Burnham has been warned not to increase taxes Credit: AFP
Shadow Chancellor Sir Mel Stride says higher taxes choked the economy and urges against a similar strategy Credit: Getty
Meanwhile, the International Monetary Fund said the Government should be “very selective in accommodating new demands” for spending and instead focus on reducing the deficit.
Mr Burnham, who will be named Labour leader today, will replace in Downing Street next week with growth up just 0.1 per cent for May.
The sluggish growth is Chancellor last major set of figures presiding over the economy.
Sir Mel said: “Rachel Reeves said growth was her ‘number one mission’. She has failed.
“Two years of higher taxes have choked the economy, and now wants even more taxes to pay for more .
“Starmer and Reeves may be on their way out but the problem isn’t just the Chancellor. It’s the . Different faces, same failed approach.”
Burnham has said there is “some room” for movement on tax and he also says he might “at some point” have to ask for a little more.
Meanwhile, the pound hit a one-year high against the Euro and also climbed against the dollar on expectations that current Home Secretary will become the next Chancellor.
It came as the IMF called on Mr Burnham to avoid increasing public spending in the face of rising .
Their latest report said the UK should focus on growth and stabilising debt.
Eze Chidiebere Paul
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