Labour accused the Chancellor of making working families and small businesses pay the price for the “economic carnage” unleashed by government instability.
Jeremy Hunt announced tax rises, public spending cuts and the scaling back of energy bill support in an Autumn Statement designed to help plug a £55 billion blackhole in Britain’s finances.
He said “difficult decisions” were needed to “restore stability, bring inflation down and balance the nation’s books”, but also increased the minimum wage and committed to the pensions triple lock.
However shadow chancellor Rachel Reeves criticised the revolving door at the top of government in her response to the budget.
She said: “Approaching the end of 2022, three prime ministers, four chancellors and four budgets later. And where do we find ourselves? In an even worse place than where we started. Inflation spiralling.
“Growth rates plunging. Living standards falling.
“Britain is a great country, with fantastic strengths. But, because of this government’s mistakes, we are being held back.
“The mess we are in is not just a result of 12 weeks of Conservative chaos but 12 years of Conservative economic failure. Growth dismal. Investment down. Wages squeezed. And public services crumbling.
“And what does the Chancellor have to offer today? More of the same — with working people paying the price.”
Ms Reeves vowed that a Labour government would reform business rates to help small businesses.
But the party faces a dilemma over whether they will back any of Mr Hunt’s fiscal policies and if they will vow to reverse his tax rises at the next election.
Labour sources said the party would not speculate on whether it would support, or pledge to reverse any of the government's tax increases, until the party had scrutinised the OBR forecast.
Ms Reeves added: “We need a serious long-term plan to get our economy growing again – powered by the talent and effort of millions of working people and thousands of businesses.
“And we need a fairer, greener, and more dynamic economy creating jobs across every part of the country.
“In homegrown renewables, nuclear power, in insulating homes.
“With a modern industrial strategy where government works hand in hand with business, working with small to medium sized businesses who are the biggest private sector employers, properly fixing business rates so our high streets thrive again."
