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European Union

Labour's Brexit Blame Game: Health Secretary Puts Share of Responsibility on EU Exit

Strategic Insights

— 1 min read

As the Labour Party gears up for its November Budget, Health Secretary Wes Streeting has acknowledged that Brexit is a "problem" caused by the UK's exit from the EU. Speaking at the Cliveden Literary Festival, Streeting expressed frustration at not being able to speak out about the economic issues resulting from Brexit earlier, citing low productivity, low growth, and high taxation. He went on to state that Brexit is "part of" the problem Britain is dealing with, along with the structural problems in the British economy.

Key Takeaways:

  • Labour's November Budget is expected to blame Brexit for tax rises, with Chancellor Rachel Reeves pointing to the long-term weakness of productivity in the UK economy.
  • Streeting acknowledged that Brexit has caused a decade of low productivity, low growth, and high taxation, which he believes has had a significant impact on the country.
  • The Chancellor is expected to argue that had it not been for Brexit, the downgrade in the Office for Budget Responsibility's forecast of Britain's productivity would not have been needed.
  • Labour is attempting to pin the blame on Nigel Farage, accusing him of delivering Brexit with "easy sloganeering" and walking away without taking responsibility for its implementation.
  • Streeting expressed "enormous respect" for those who voted to "take back control" but believes there was not a proper debate about the problems caused by Brexit.
  • The Chancellor, Rachel Reeves, is expected to respond to the downgrade by pointing to the long-term weakness of productivity in the UK economy and promising to tackle it with a programme of investment.

Statistics:

  • The Office for Budget Responsibility is expected to downgrade its forecast of Britain's productivity.
  • The Treasury believes this will result in productivity being downgraded by a significant amount.
  • The Labour Party promised not to put up income tax, National Insurance, and VAT ahead of the 2024 election, meaning any tax rises will have to fall on other levies.

Sources:

  • Wes Streeting's speech at the Cliveden Literary Festival, as reported by a British news outlet.
  • The Office for Budget Responsibility's economic forecasting models, as referenced by the Treasury.
  • Labour's 2024 election manifesto, which promised not to put up income tax, National Insurance, and VAT.
  • Nigel Farage's comments as quoted by a British news outlet.

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