Rachel Reeves has vowed to "fight" amid mounting pressure over Britain's economy in a landmark speech setting out Labour's growth plans.
Speaking at a Siemens plant in Oxfordshire, Reeves admitted her Budget came with "costs" - but claimed that no opposition parties put forth a proper alternative.
She admitted the Budget came with "consequences on business and beyond" with its £25billion rise in employers' National Insurance contributions, saying: "I accept there are costs to responsibility, but the costs of irresponsibility would be far higher."
She added that since October, she has "seen no alternative put forward by the opposition parties".
The Chancellor said her Budget came with 'consequences' - but laid into opposition parties for failing to put forth a proper alternative
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In another swipe at the Tories, the Chancellor said: "For too long, politicians have lacked the courage or the strength to confront these challenges.
"When presented with a choice, they have not prioritised growth. Instead, they have accepted the status quo and they have been the barrier - not the enablers - of change."
But the Conservatives have hit back, labelling Reeves and Sir Keir Starmer themselves "barriers to growth".
"The call is coming from inside the house," a Tory campaign message said.
LATEST ON RACHEL REEVES:
The Tories have labelled Reeves and Sir Keir Starmer 'barriers to growth'
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Her pledge to "fight" followed yesterday's dire warning that firms are expecting a significant fall in activity over the next three months, according to Confederation of British Industry (CBI) analysis.
Institute of Economic Affairs economics fellow Julian Jessop has warned the confidence drop is "another UK recession signal".
While the CBI's Alpesh Paleja added: "After a grim lead-up to Christmas, the New Year hasn't brought any sense of renewal, with businesses still expecting a significant fall in activity.
"Anecdotes suggest that companies are being hit by lacklustre demand and caution among consumers, while also continuing to adjust to measures announced in the Budget.
2025 'hasn't brought any sense of renewal,' CBI economists warned yesterday
CBI"There is an urgent need to get momentum back into the economy."
But the Chancellor's announcements today have been met with praise - even by think tanks on the liberal right.
The Centre for Policy Studies called Reeves's long list of infrastructure projects and investment pledges "hugely welcome" - while the IEA said the Chancellor "should be applauded for many of the decisions she has taken today".
