UK government’s economic message ‘discouraging’, says Conor Murphy

Murphy said there had been “a sense of optimism after the chaos and austerity of 14 years of Tory rule” and urged the government to recapture that feeling.

The chancellor and prime minister are expected to deliver a more optimistic and hopeful economic message at the Labour Party conference next week and at an investment summit in mid-October.

Asked whether “the pessimism was overblown”, Chancellor Rachel Reeves told the BBC: “The latest opinion polls continue to show a high degree of confidence in the UK economy because this government has brought stability.”

She also spoke about how she now wants to “unleash the enormous potential” of the country.

Bank of England Governor Andrew Bailey said on Thursday he believed underlying confidence was improving but consumers wanted to “see evidence that this is sustained”.

He also noted that rising incomes following soaring inflation had led to a “sharp increase in savings” over the past year – more than the increase in consumer spending.