Shrinking economy is due to the 'mismanagement of the economy', Stride says
The economy shrinking in April "speaks to the mismanagement of the economy", the shadow chancellor says.
Mel Stride tells Sky News that Labour are "building a very fragile economy" and that this is the "root of the problem".
He says GDP falling by 0.3% in April - more than economists expected - is "very disappointing".
Stride adds: "The government has come in, put a lot of taxes on businesses, which has destroyed growth, gone out, spent a lot of money which has been inflationary.
"We've seen interest rates higher for longer. And of course, it's all adding to this national debt, upon which the servicing costs alone are 拢100 billion a year."
He points out that this is twice what the UK spends on defence.
Stride also reflects that the OBR has halved its forecast for growth this year.
"That, as I say, is driven by the choices that this government has made to tax businesses, tax jobs, wealth creation, the things that expand the economy and to focus on spending and borrowing a lot of money", he says.
Stride believes the UK economy is now "in a very precarious situation" and thinks the government "should not be adding fuel to the fire with massive borrowing".
Reeves' big three mistakes
He says that he thinks the government has made three key mistakes.
The shadow chancellor says the chancellor "shouldn't have loaded up taxes on businesses and gone on a borrowing and spending splurge".
His second issue is that he believes the government should have "concentrated on productivity", setting efficiency targets when they gave pay rises to workers.
"Thirdly, they should have gripped welfare spending. And that's what they've singularly failed to do", he added.