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Rachel Reeves has defended its £26bn Budget Called tax raids “fair and necessary” and insisted the rich should take a greater share economic burden”,
Ms Reeves was accused of misleading the public on the country’s financial condition in order to justify herself tax hike after He insisted that they had to make “difficult choices”, despite knowing that their deficit had been eliminated and instead they had a surplus of £4.2 billion.
but in an interview GuardianWhile Ms Reeves backed her move to bring in 43 different taxes and freeze the income tax thresholds that have left millions of people paying higher taxes, she said she was not prepared to make cuts.
“I was not prepared to cut public services because people voted for change at the election,” she said.
He insisted that it should be the responsibility of Britain’s wealthy to bear the burden of rebuilding the country’s “crumbling” public services, and denied that people of working age were being asked to shoulder a greater burden than pensioners.
“It’s very clear that the economic burden in the Budget was not about age. It was about wealth,” he said. “Those who bear more of the burden are those with larger incomes and wealth… so I don’t accept it.
“We’ll never get out of this problem of weak growth unless we’ve got investment in the economy, and we’ve got investment in things to boost our productivity.”
The Chancellor also addressed leadership speculation after a difficult few weeks for the Prime Minister, but insisted the party is behind Sir Keir Starmer.
“We all know what happened in the previous government, when they went after the leaders and the chancellors,” he said. “It was bad for the country.”
Ahead of the Budget, warnings suggested Rachel Reeves could face a financial gap of up to £20 billion in meeting her self-imposed rule of not borrowing for day-to-day expenses. And on November 4th he indicated that higher taxes are likely Donald Trump’s tariff war and Budget The watchdog has feared a decline in economic productivity.
but on friday Office for Budget Responsibility (OBR) disclosed that it had informed chancellor As early as September 17, it was estimated that the gap would be smaller than initially expected, and was later reported to have disappeared, instead reporting that there was a surplus.
Ms. Reeves said Guardian,People There’s often talk about what Chancellors do in their budgets, but sometimes the things that are more important are the things you don’t do. One of the things I didn’t do was cut capital spending, investments in new schools and hospitals, new energy infrastructure, rail infrastructure.
“The easiest thing to do would be to say that the OBR has made this downgrade, you need to cut our cloth accordingly.”
Conservative leader Kemi Badenoch said the OBR’s revelations showed Ms Reeves had “lied to the public” and called for her to be sacked.
But Downing Street rejected allegations that Ms Reeves had misled the public and markets ahead of the Budget.
The Prime Minister’s official spokesman said, “I do not accept it.” “As he said in the speech he gave here (Downing Street), he talked about the challenges the country was facing and he laid out his decisions incredibly clearly in the Budget.”
But paul johnsona former head of Institute of Fiscal Studies (IFS) said: “I think so [her November 4 press conference] “Maybe it was misleading.”
He said his words were “obviously” meant to confirm what independent forecasters such as the National Institute of Economic and Social Research (NIESR) were saying, as they predicted Ms Reeves would have to plug a multi-billion pound black hole in the country’s finances.
Mr Johnson said the speech was “designed to confirm a narrative that there was a fiscal black hole that needed to be filled by significant tax increases. In fact, as she knew at the time, no such hole existed”.