Is Labour’s economic outlook too gloomy?

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After fewer than 100 days in power and a month before its first Budget, the Labour government is already under fire over the negative tone of its messaging on tax and spending.

At the Labour party conference this week, Prime Minister Keir Starmer warned that he was ready to take “unpopular” decisions to repair Britain, stating that “things will get worse before they get better” but that the pain would be shared fairly.

Starmer and chancellor Rachel Reeves have been keen to stress the scale of the challenge ahead. Some fear this downbeat approach could knock consumer and business confidence in the UK, preventing them achieving their pledge to have the highest rate of growth in the G7. 

“If anything makes the UK less attractive for talent — and increasing taxes will do so — the country as a whole will end up losing,” Taavet Hinrikus, co-founder of London-listed fintech Wise, told the Financial Times earlier this month.

An investment summit and Labour’s first Budget at the end of October will provide ministers with opportunities to reassure business. But some feel that the government needs to change the mood music to attract potential investors to UK plc.

What do you think? Should Labour change its stance and promote a more positive outlook for the economy? Or is it right to be frank about the obstacles ahead? Which choice is key to growing the UK economy? Tell us your views by voting in our poll or writing in the comments section below.