Rachel Reeves is accused of killing growth as Bank of England warns UK economy is grinding to halt after her anti-business Budget

Rachel Reeves was yesterday accused of killing growth as the Bank of England warned the economy is grinding to halt in the wake of her anti-business Budget. Shadow business secretary Andrew Griffith said: ‘Today’s growth downgrade from the Bank of England follows warnings from almost every business group and forecaster. Not a surprise that the financial markets are pushing up UK bond yields' Paul Dales, chief UK economist at consultancy Capital Economics, said: ‘The forecast gives more credence to the idea that the economy is flirting with recession’And shadow chancellor Mel Stride warned it may mean Ms Reeves will have to break her pledge not to come back for more tax hikes to finance her spending plans. Picture date: Saturday January 20, 2024 Shadow chancellor Mel Stride said: ‘Without the growth Labour promised, they will be unable to sustain their spending plans and will be under real pressure to break the Chancellor’s pledge that she will not be back with more tax hikes' Sir Keir acknowledged that current growth forecasts are disappointing but said it was because they are ‘not able to take into account things that have not happened’, such as Labour’s promised planning reforms. The UK is in a bad way.’ Former Bank of England rate-setter Andrew Sentance said: ‘Higher inflation, higher pay increases, and a damaging Budget which has yet to fully affect the economy.