Economy minister accuses PM of 'disheartening' messaging

Conor Murphy hopes the government changes to a "more positive" message

The UK government is creating a "disheartening and dispiriting" atmosphere with its gloomy messages on the economy and public finances, Stormont’s economy minister has said.

Conor Murphy added that he hoped the government changed to a "more positive" message.

It comes as a regular survey of UK consumer sentiment showed a sharp fall in confidence in September.

The prime minister has warned that October’s budget is going to be "painful".

Sir Keir Starmer has warned that October's budget is going to be "painful"

'Sense of optimism'

Murphy said there had been "a sense of optimism after the chaos and austerity of 14 years of Tories" and urged the government to recapture that.

The chancellor and prime minister are expected to outline a more hopeful, upbeat economic message at the Labour Party conference next week and at an investment summit in mid-October.

When asked if "doom and gloom were overdone", Chancellor Rachel Reeves told the BBC: "The latest business surveys continue to show a high degree of confidence in the UK economy because this government has brought stability back."

She also spoke of how she now wanted to "unlock the huge potential" of the country.

Bank of England governor Andrew Bailey said on Thursday he thought underlying confidence was rising but consumers wanted "to see evidence that this is sustained".

He also noted that rising incomes in the wake of inflation spiking had led to a "sharp rise in savings" in the past year - more than the increase in consumer spending.

Public finances under pressure

Northern Ireland’s economy has been performing relatively well in the past six months with output expanding by 1.4% in the first quarter of this year.

However the public finances are still under intense pressure and public services are continuing to suffer.

Earlier in September the Finance Minister Caoimhe Archibaldsaid Stormont departments were facing spending pressures of £767m.

That means departments believe they need this amount more than what is currently in the budget.

Archibald said Stormont could expect to get about £500m extra, partially as a consequence of October’s Westminster budget.

She said while that would go a "significant way" towards easing the pressures, ministers will have to play their part to prevent another overspend.