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LABOUR was urged to fight for unions and left-wing groups as Sir Keir Starmer held an extended cabinet meeting today after the Bank of England halved its growth estimates for this year.
The Prime Minister called the six-hour meeting with his top team after the bank warned GDP would reach just 0.75 per cent in 2025 and remain weaker than expected for the next couple of years.
Held in a secret location away from No 10, civil servants were sent out of the room after the first two hours, leaving ministers to discuss Labour’s dire polling figures ahead of the local elections in May.
Momentum warned the government that voters will continue to turn away from the party if it does not reconnect with its roots.
A spokeswoman said: “The Labour government must fight for the interests of the people it was founded to represent.
“Without a bold, transformative programme, voters will look elsewhere for change.”
Stand up to Racism co-convener Sabby Dhalu said: “It’s too early to predict precisely what will happen at the next general election.
“However if the trajectory of recent polls continue, it is clear that Reform UK will gain many seats and Labour could lose its majority.
“Labour must reverse this trend. I hope Starmer’s crisis Cabinet resolved to challenge not concede to Reform UK on immigration and refugee rights.
“Racism thrives when living standards fall so I also hope the government agreed to adopt policies that will make people better off.
“That’s why people voted for a Labour government. The opposite approach will be disastrous for Labour and only benefit Reform.”
Chancellor Rachel Reeves’s plans for growth suffered a major blow on Thursday when the Bank of England halved its forecast for 2025 and warned households would face mounting pressure from rising prices.
Unite responded by urging the government to prioritise growth-enhancing projects to reboot the economy.
General secretary Sharon Graham said: “No investment equals no growth. So what are we waiting for?”
Labour also faced criticism from the left of the party this week, after refusing to readmit Apsana Begum and Zarah Sultana to the parliamentary party.
The pro-Palestine Muslim women MPs were suspended with five others in July for voting against the government’s policy of maintaining the cruel two-child benefit cap.