Minister Torn Apart For Claiming Brits Will Feel Better About The Economy This Year

"People can't pay their bills because they feel like they might be 'in a better mood'," one BBC presenter replied.
Business secretary Jonathan Reynolds was torn apart for claiming Labour's new plans will boost the "animal spirits"
Business secretary Jonathan Reynolds was torn apart for claiming Labour's new plans will boost the "animal spirits"
via Associated Press

Business secretary Jonathan Reynolds was repeatedly criticised this morning over his promise that Labour’s new growth plans will leave people feeling better about the economy as soon as this year.

Rachel Reeves will unveil the government’s plans in a major speech this morning.

But as the UK teeters on the edge of a recession just seven months since Labour was elected, there’s huge pressure on the chancellor to turn the economy around – and fast.

So on BBC Breakfast, presenter Sally Nugent asked Reynolds: “When do we feel that difference [to the UK finances]?”

He said it has been a “difficult time” but added: “We want people to feel it in their pocket. It will take time to come through. The signs are positive and we need to build on that.”

Nugent asked again what he meant by a “little bit of time” for people to feel better, adding: “When will people notice a difference from the plans you are going to announce today?”

“They will feel a difference this year,” Reynolds said.

He claimed Labour would “generate a sense of excitement” from its announcements today, showing there is “momentum and dynamism” in the UK.

“People who are not investing in the UK will feel they are missing out,” he said. “Big infrastructure projects do take time to deliver, but the sense of things happening in the UK, the determination to deliver for the British people, that can be generated by what is happening today.”

But Nugent hit back: “One thing is true – people can’t pay their bills because they feel like they might be ‘in a better mood.’”

He replied: “No, but the animal spirits govern the economy, determine things like investment, things like wages, things like employment.”

He said Labour needed to work with businesses to show it can deliver on things which its predecessors failed on.

“Not everyone will be happy with the determination that we are going to show today, but you will see the resolve to do the things that this country needs to see happen,” Reynolds said.

His claims had a similar reception on ITV’s Good Morning Britain, when presenter Susanna Reid said viewers would have their “jaws on the floor” over the change in tone from the government.

Labour came into office warning that the Tories had left a ”£22bn black hole” in the public finances, and that they were going to have to make plenty of “tough decisions” to get the economy back on track.

The host of BBC Radio 4 Today, Emma Barnett, also asked Reynolds: “Did you go on about the black hole too much, do you regret how much you went on about that black hole?”

He said that he only regretted there a was a black hole, and referred again to the “animal spirits”.

Barnett said: “Animal spirits? Businesses say the tax changes mean they’re going to face cutting jobs.”

She also questioned his claim people would “feel the change this year,” pointing out benefits will not be felt until the next decade for many major building plans.

“People have been saying since the 70s, ‘It will take too long to do that,’ so nothing happens,” he replied, adding that Labour needs to get across a sense that it will not accept the poor economic performance seen in the last few years.

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