‘There’s no easy way out!’ Kwasi Kwarteng claims Labour trapped by ‘disastrous’ Budget
Former Chancellor Kwasi Kwarteng has issued a stark warning that Labour finds itself in an intractable position with its economic policies, declaring “there’s no easy way out”.
Speaking about the current government’s fiscal approach, Kwarteng painted a bleak picture of Britain’s economic future under Labour’s stewardship.
Speaking to GB News the former Chancellor said: “I think it’s a worse situation because there’s no easy way out.
“What happened with us was that Liz Truss sacked me, and then they reversed all the all the some of the good policies, I thought.
“But they reversed all the policies in the mini budget. Where we are now is there’s no there’s no end in sight.
“You’ve got a Labour government with a majority of 175 something in that region, and they were another election in four years time, which is quite a long way away.
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“There’s no inkling that they’re going to reverse course or change their policy.
“So in the meantime, I think they’re going to kill growth. I think what Mel said was 100 per cent right.
“They’ve killed it stone dead. And the danger is that we’ll get in will be in a recession, God forbid.
“If that happens, their only recourse will be to raise taxes even more, which will actually cause lower growth.”
His comments gain additional context following recent developments involving his former boss, Liz Truss, who has taken legal action against Keir Starmer.
Truss’s lawyers have issued a cease and desist letter to the Labour leader over claims she “crashed the economy” during her brief premiership.
The legal challenge argues that accusations about the September 2022 mini-budget causing an economic crash are “false” and defamatory.
The letter cites expert analysis suggesting market movements following the mini-budget did not constitute a “crash”.
Truss’s legal team has specifically blamed interest rate changes on the Bank of England’s handling of the liability-driven investment bonds crisis.
The former Prime Minister lost her South West Norfolk seat to Labour in last year’s election, adding further weight to the ongoing economic policy debate.