Labour government reports 'unforgivable' budget gap
Serious allegations weigh heavily: The Tory government of Rishi Sunak is said to have concealed a £22 billion financial hole before its defeat. The new Chancellor has announced significant cuts. Her predecessor suspects a plot to raise taxes.
The new Labour government in the UK has inherited a massive £22 billion (around €26.13 billion) financial black hole, according to Chancellor Rachel Reeves. She described the economic problems left by her Conservative predecessor as "unforgivable". The Tories under former PM Rishi Sunak had given false hopes, she criticised. "They promised roads that were never built, public transport that never came, and hospitals that would never treat a single patient," said the ally of PM Keir Starmer in the London parliament. "They spent money like 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 from January 1st. Reeves' Conservative predecessor Jeremy Hunt accused the new government of deliberately talking down the economy to impose new tax hikes despite their election promises.
Reeves, however, criticises that the Tories had "concealed some things from the country". According to Labour, the controversial migration policy of the Conservatives with planned deportations to Rwanda cost around £700 million, not the officially stated £400 million.
Already agreed pay rises for public sector workers like teachers or doctors were not covered, said Reeves. She promised to honour the agreements. Aid for Ukraine will also continue as planned, despite insufficient funds set aside. The Office for Budget Responsibility (OBR) announced it would review the latest Conservative budgets.
Keir Starmer, an ally of the newly appointed Prime Minister, publicly criticized the Tory government under former PM Rishi Sunak for promising unreliable infrastructure developments and concealing financial issues. After inheriting a substantial £22 billion financial deficit, Chancellor Rachel Reeves, a member of Keir Starmer's Labour Party, accused Jeremy Hunt, her Conservative predecessor, of planning to raise taxes through deliberate economic downturn claims.
