Rachel Reeves will flag Labor Party plans to cut government departments and the Civil Service as the new administration seeks to accuse Rishi Sunak of “covering up” problems with the economy.
The chancellor is due to speak in the House of Commons this afternoon following a review of the government’s finances after taking office at the start of the month.
It was reported that Mrs. will reveal a £20 billion “black hole” she found out from the books – although the Conservative Party argues she would have been aware of this before taking office.
Watch a special Sky News program about Ms Reeves’ speech from 3pm on Sky channel 501, Virgin channel 602, Freeview channel 233, the Sky News website and application or in YouTube.
Ms Reeves to reveal this year’s budget date, with speculation Work are considering raising taxes in this fiscal event.
His speech will take place sometime after 3pm, depending on other business happening in the House of Commons.
Today’s announcement will, however, set out plans for public sector cuts in a bid to save money for the current financial year.
According to the Treasury, Ms Reeves “will announce immediate action to restore economic stability and deliver departmental savings this financial year”.
Reeves is expected to say, “It’s time to come clean with the public and tell them the truth.
“The previous government refused to make difficult decisions. They covered up the true state of public finances. And then they ran away. I will never do that.
“The British people voted for change and we will achieve that change. I will restore economic stability. I will never stand by and let this happen again.
“Let’s fix the foundations of our economy, so we can rebuild Britain and improve the situation in every part of our country.”
The Chancellor will announce an Office of Value for Money (OVM) – paid for from existing Civil Service budgets – to “put an end to wasteful spending”.
The OVM will make recommendations on how to save money for the public purse this year.
Labor ‘pitch the field’ for tax rises
See more information:
Expert says ‘black hole’ corresponds to conservative tax cuts
Chancellor scrambled to fill the black hole
New reforms will be announced to drive “efficiencies” – a word that usually means cuts – in government departments and bodies such as the Prison and Probation Service, the Met Office, the Environment Agency and HM Revenue and Customs.
There will also be “immediate actions” to prevent “non-essential spending” on consultants, as well as the sale of “surplus properties” and the acceleration of previously announced efficiencies.
Reeves is also expected to say: “Before the election, I said we would face the worst legacy since World War II.
“Taxes at a 70-year high. Debt through the roof. An economy just coming out of recession. I knew all these things. I was honest about them during the election campaign. And about the difficult choices that meant.
“But when I arrived at the Treasury three weeks ago, it became clear that there were things I didn’t know. Things that the opposing party had covered up from the country.”
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The chancellor also plans to return the UK to one fiscal event per year, in an attempt to return stability to the markets.
And she must recommit to the government’s fiscal rules – including not borrowing to finance day-to-day expenses and getting debt down by the fifth year of the economic forecast.
Treasury Secretary to the Treasury Gareth Davies said: “Rachel Reeves is trying to trick the British public into accepting Labor tax rises.
“She wants to pretend that the OBR, set up by the Conservatives and whose forecasts have been used in every last Conservative government budget, does not exist in order to make everything she says credible and, like her books, this announcement is a copying and pasting what happened decades before.
“But her words and actions about supposedly saving taxpayers money are insulting when she is secretly planning to raise taxes at the same time.”
This story originally appeared on News.sky.com read the full story
