John McDonnell, the Shadow Chancellor of the Exchequer, has expressed concern following the cut in the UK’s growth forecast by both the European Commission and the Bank of England.
The Bank of England confirmed today that they were cutting the UK’s growth prediction from 2.5% down to 2.2%. The bank’s report also cut the expected increase in wage growth from 3.75% down to 3%.
In a statement McDonnell said:
“It’s unwelcome that both the EU Commission and the Bank of England have cut their expected growth forecasts for the UK.
Labour has been cautioning for several months now about growing global uncertainty, something that George Osborne has only woken up to recently.
We should be particularly concerned that, in Mark Carney’s own words, the “accelerating fiscal consolidation” is part of the reason for why UK growth is expected to dip below past averages.
This is further evidence that the Chancellor’s austerity programme is driven by ideology and could be undermining the potential of the UK economy”.