Rachel Reeves LIVE:Chancellor skewered over 'grim' inflation surge as Brits pay the price

Labour's environment secretary Steve Reed has insisted Labour cannot fix the economy straight away.

He echoed Ms Reeves' concession that today's inflation figures are "disappointing".

He told Times Radio: "I recognise these are disappointing figures. I know how much people are struggling with the cost of living crisis, but no one said that this problem could be fixed overnight."

"And I think you have to look at these figures in the round. We've bought double digit inflation way down now. We're stabilising the economy.

"We're putting money back in people's pockets with an increase in the minimum wage that puts £1,400 a year into the pockets of some of the lowest paid.

"We've seen fuel duty frozen. We've had four interest rate cuts in a row now. And for the first quarter of this year, we now have the fastest growth in the G7.

"So there's a lot of positive information out there as well. The figures are disappointing on inflation this morning.

"But no one said this could be fixed overnight. But we are on the right road to fixing and stabilising our economy."

Water and sewerage bills rose by 26.1% in April alone, largely responsible for today's hike in inflation.

This is the largest monthly increase for these bills since records began in 1988.

Conservative business secretary Andrew Griffith has laid today's blame squarely at Ms Reeves' door.

He said: “This concerning rise in inflation is for the month in which Labour’s £25 billion jobs tax hit."

"Business warned it would lead to higher prices but the Chancellor wouldn’t listen.

"Like a volcanic fireball, Rachel Reeves’ choices are now tearing through businesses and the high street, making us all poorer.”

Senior Tory MP Nick Timothy has condemned Keir Starmer's broken promises, after the PM promised to 'put more money in people's pockets'.

Mr Timothy blasted: "The opposite is true. He’s increased taxes and borrowing and business costs and loaded policy costs onto energy bills. And inflation is back."

One of Labour's most powerful trade union bosses has delivered a stark warning this morning following the release of today's inflation data.

Sharon Graham of Unite said: "Today’s inflation figures show that the cost-of-living crisis is far from over."

"Prices have risen a third faster than wages. Workers will only stop feeling the pinch when wages catch up."

The ONS has revealed that Briton has a much scarier inflation problem when looking just at 'core' inflation.

The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 4.1% in the 12 months to april, up from 3.4% in the 12 months to March.

However this gets even worse when you just take the core measure of CPIH, which excludes energy, food, alcohol and tobacco. This rose by 4.5% in the 12 months to April 2025.

The LibDems have described this morning's inflation news as "grim", and a "triple whammy" on Britons' finances after "the Government’s disastrous jobs tax, Donald Trump’s devastating tariffs and April’s damaging business rates bill rises."

Deputy Leader and Treasury spokesperson Daisy Cooper MP said: "Ministers cannot allow inflation to spiral as it did under the Conservatives, but they risk repeating their record for as long as the employer’s National Insurance hike remains in place."

“It’s high time the Government saw sense and put in place a proper plan to boost our economy: scrapping the jobs tax, standing with our allies to end Trump’s trade war, and urgently negotiating a new customs union with the EU. We must see bold action to deliver relief for millions of hard-pressed households.”

The Chancellor has reacted to today's inflation blow, admitting she is "disappointed with these figures".

"We are long way from the double digit inflation we saw under the previous administration, but I'm determined that we go further and faster to put more money in people's pockets.

"That's why we have increased the minimum wage for millions of working people, frozen fuel duty to protect commuters and struck three trade deals in the past two weeks that will go towards cutting bills."

The ONS has explained this morning's huge inflation leap is largely down to domestic bills going up.

Grant Fitzner, acting director of the body, said: "Significant increases in household bills caused inflation to climb steeply."

"Gas and electricity bills rose this month compared with sharp falls at the same time last year due to changes to the Ofgem energy price cap.

"Water and sewage bills also rose strongly this year as did vehicle excise duty, which all pushed the headline rate up to its highest level since the beginning of last year.

"This was particularly offset by falling prices for motor fuels and clothing driven by heavy discounting for children's garments and women's footwear."

Andrew Neil has suggested this morning's inflation news means it's less likely we'll see future cuts to interest rates by the Bank of England.

The veteran journalist sais: "UK inflation rose 3.5% in April compared to a year ago, faster than expected 3.3% jump. Core inflation rose 3.8% on a yearly basis, compared to the 3.6% expected. Services inflation jumped to 5.4% well above the 4.8% estimate."

"Say goodbye to further interest rate cuts soon?"