Labour accuses Tories of massive waste
It's not looking good for the British public finances, claims the ruling Labour Party. They accuse the outgoing Tories of spending a lot of money but achieving very little of what they promised. A flagship project of the Conservatives, for instance, ended up much more expensive than announced.
The new Labour government in the UK has inherited a massive financial hole of £22 billion (around €26.13 billion), according to Chancellor Rachel Reeves. She described the economic problems left by her Conservative predecessor as "unforgivable". The Tories of former Prime Minister Rishi Sunak had given the country false hopes, she criticised.
"They promised roads that would never be built, public transport that would never come, and hospitals that would never treat a single patient," said the ally of Prime Minister Keir Starmer in Parliament in London. "They spent money as if there was no tomorrow because they knew someone else would foot the bill."
Reeves announced significant cuts. As an initial response, many pensioners will no longer receive state support for energy payments. A tax loophole for private schools will be abolished as of January 1st. Reeves' Conservative predecessor, Jeremy Hunt, accused the new government of deliberately talking down the economy to introduce new tax increases despite their election promises.
Rigid migration policy became much more expensive
Reeves criticised that the Tories had "hidden things from the country". According to Labour, the controversial migration policy of the Conservatives, involving planned deportations to Rwanda, has cost around £700 million, not the approximately £400 million officially stated.
Already agreed pay rises for public sector workers such as teachers or doctors were not covered, said Reeves. However, she promised to honour the agreements. Aid for Ukraine will also continue as planned, despite insufficient funds being set aside. The Office for Budget Responsibility (OBR) announced that it would review the latest Conservative budgets.
The Office for Budget Responsibility (OBR) will thoroughly scrutinize the previous Conservative budgets, given the discrepancies in expenditure, as acknowledged by Reeves. The new Labour government, led by Chancellor Rachel Reeves, is under criticism from the Commission, with former Chancellor Jeremy Hunt accusing them of painting a bleak economic picture to justify new tax increases contrary to their election promises.
