The Tory leader said Sir Keir Starmer and Rachel Reeves were "making the wrong choices", as the economy shrank for the second month running.
Ms Badenoch warned: "We will all pay the price." The GDP fall of 0.1% in October follows an identical slump in September and covers the period just before the Chancellor's tax-hiking Budget, with economists predicting worse to come.
Ms Badenoch said: "The businesses I speak to are afraid for their future.
Some have stopped hiring, others are letting people go, some will go bust.
"Labour inherited the fastest growth in the G7, but Keir Starmer and Rachel Reeves have crashed the economy.
"Government is about making choices, and this Labour government have chosen to hike taxes on business - and we will all pay the price." The Opposition leader's attack came after she visited small firms in Essex that say they will be clobbered by Ms Reeves' national insurance rise.
The Chancellor insists her bigspending Budget will help revive dismal growth data a flagship Labour pledge. But firms have warned that her tax raids, yet to kick in, will force them to cut staff and investment.
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