Labour have accused Rishi Sunak of being out of contact and performing a “victory lap” after it emerged the UK was out of recession.
Mr Sunak claimed that “issues are beginning to really feel higher” hours after figures confirmed the financial system had grown by 0.6 per cent over the primary three months of this yr.
However shadow dwelling secretary Yvette Cooper labelled the Conservatives as “out of contact” for celebrating.
She instructed Sky Information: “The Authorities appears to assume we should always be glad about the truth that we’re not in recession and have low progress as a substitute.
“I feel this nonetheless displays the truth that working individuals are nonetheless worse off than they have been 14 years in the past, that individuals are nonetheless paying extra on their mortgages, costs are nonetheless a lot greater and really individuals are feeling actually squeezed.”
She added: “The thought of the Conservatives making an attempt to do a victory lap on all of this and anticipating everybody to assume: ‘It is all fantastic and we have by no means had it so good,’ simply exhibits how out of contact they’re.”
Mr Sunak insisted that confidence within the financial system was rising as he visited a enterprise facility in Eynsham, Oxfordshire.
Chatting with Siemens employees, he mentioned the UK had “undoubtedly” had a tough couple of years.
However he added: “Really now issues are beginning to really feel higher.
“Confidence is returning to the financial system and the nation, and I hope that you simply’re beginning to really feel that too.”
Economists had predicted there can be a smaller enchancment for first quarter of this yr, of 0.4 per cent.
The figures are the strongest quarterly progress because the finish of 2021.
The financial system had been in what is called a technical recession after official statistics confirmed declines of 0.1 per cent within the third quarter of 2023 and 0.3 per cent within the fourth quarter.
It adopted rising inflation and rates of interest that heaped ache on thousands and thousands of mortgage debtors, alonsgide sky excessive power payments.
This led to a fall in spending habits, hitting issues just like the housing onerous.
However the newest figures present an enchancment in shopper spending, in addition to resilience throughout retail shops, pubs and eating places.
Earlier this week Financial institution of England governor Andrew Bailey mentioned he was “optimistic that issues are transferring in the fitting route”, with inflation anticipated to drop to the two per cent goal fee inside months.
Lib Dem Treasury spokesperson Sarah Olney mentioned: “This Conservative Authorities crashed the financial system and despatched mortgages spiralling. If Rishi Sunak thinks hard-hit households might be celebrating in the present day, he’s much more out of contact than we thought.”
