Tories 'gaslighting' public on economy, says Reeves

Rachel Reeves will draw the economic battle lines for the next general election today, challenging government claims that Britain is "turning a corner" when millions are still struggling with the cost of living.

- Pippa Crerar

The shadow chancellor will accuse Rishi Sunak and Jeremy Hunt of "gaslighting" the public with overoptimistic statements about the UK economy that are "out of touch" with most people's lives.

Labour will draw on "new economic thinking" from leaders in Europe and the US, Reeves will say, as she claims that when it comes to Britain's finances the Conservatives have "crashed the car and left it by the side of the road".

Sunak will attempt another reset this week after a disastrous set of local elections results.

The prime minister argued yesterday that the general election outcome was not a foregone conclusion despite the local results, the struggle to close the gap with Labour in national polls and many of his MPs privately conceding defeat is likely.

Sunak said he was "absolutely determined" to fight on in the run-up to polling day, expected this autumn.

As part of sweeping changes to the welfare system that have been criticised by disability groups, the government will announce today that a plan to help the long-term sick back into work will be piloted in 15 areas of England.

Ministers are also set to laud quarterly GDP data on Friday, which is expected to show the UK has emerged from recession, while inflation figures later this month are likely to show the Bank of England hitting its 2% target.

But in a speech in the City of London, Reeves will argue that Sunak's message to voters that the economy is improving is "deluded".