Well what a surprise…a manifesto pledge to deliver growth sees yet another fall in GDP. With such growth centric policies this must be a real surprise to the Government. The only thing that seems to be growing is the national debt ;)
Though, that shouldn’t be a surprise…look at what Blair / Brown did to the country. The Cameron/Osborne's government came into power with a £147Bn structural deficit, which adjusted for inflation, in today's terms is about £240 Bn. It’s still not that high today.
People seem to forget what a mess Labour made of the economy last time. And to add a little colour to that deficit number; you would have course expect to be running a deficit in the aftermath of an event like the Global Financial Crisis. However, Blair/Brown barrelled INTO the GFC running a structural budget deficit of ~£80bn (~6% of GNI, the worst in the developed world). In periods of growth, like 2000-2007 you can mask a structural deficit with record tax receipts but once the wheels come off, you're well and truly up the creek without a paddle.
Now be fair, that's arguably not as bad as what Reeves has done which is a proper poison pill. One could still just about argue that the budget in 2007 (ie Brown’s last that locked in a lot of the future problems) was one that was set expecting the good times to continue, because as we all know he abolished boom and bust. It wasn't prudent at all, but it wasn't insane.
Reeves is locking in a heap of future spending cuts and tax rise into the future to try to balance what she is spending now which leaves any future government a massive headache as they will be faced with either implementing those cuts that simply have to be made or somehow raise revenues to match it whatever the tax take already is then. Labour are essentially pinning their hopes on a massive stroke of luck for something, anything, to swing their way wrt to global economic good times returning to get out of the deep hole they are digging even deeper. And that actually is close to being insane.