While the government celebrates the “fastest pace of cuts in 17 years,” the political opposition has launched a scathing attack, labeling the rate cut to 3.75% as “too little, too late.” They point to the 0.1% GDP contraction in October as evidence that the government’s economic mismanagement has already pushed the UK into reverse, regardless of what the Bank of England does.
The opposition’s narrative focuses on the damage already done. They argue that high taxes (specifically the National Insurance hike) and months of dithering have destroyed business confidence. In their view, a 0.25% rate cut is a “sticking plaster” on a broken leg. They highlight the Bank’s own admission that “one-off shocks” from government policy have restrained the fall in inflation.
This political battleground will define early 2026. If the economy remains stagnant despite the rate cut, the opposition will claim vindication. They will argue that the government has presided over a “lost year” of growth, leaving families poorer despite the lower mortgage rates.
The “fragile economy” description by the TUC is weaponized by the opposition to paint a picture of decline. They are appealing to the voters who feel that the “cost of living” crisis hasn’t ended, but has simply become the “standard of living” crisis.
For the Chancellor, the rate cut is a shield against these attacks. But shields can dent. If the recovery doesn’t materialize quickly, the “too little, too late” slogan could stick, turning the rate cut from a victory into a reminder of failure.
