29th Jul 2024 16:10
(Alliance News) - UK Chancellor Rachel Reeves said there was a GBP22 billion black hole in the public finances as she accused the Tories of covering up the scale of the problems.
In a statement to parliament she set out "immediate action" to address the issues she said had been uncovered by the audit ordered by Labour when it took office.
She told MPs: "Before the election, I said that we would face the worst inheritance since the Second World War.
"Taxes at a 70-year high, debt through the roof, an economy only just coming out of recession.
"I knew all of these things. I was honest about them during the campaign."
But, she added there were things the Tories had "covered up from the country".
She said there was a "GBP22 billion hole in the public finances now, not in the future, but now".
In a statement to parliament the chancellor said:
– A Budget on October 30 will involve "difficult decisions" on spending, welfare and tax.
– The projected overspend by the previous Tory government on the asylum system, including the "failed" Rwanda plan, was more than GBP6.4 billion for this year alone.
– Winter fuel payments will be restricted to those on pension credits or other means-tested benefits.
– Reeves would accept in full the recommendations of the independent pay review bodies, saying this was the "right decision for the people who work in, and most importantly, the people who use our public services".
– The government has agreed a pay offer to junior doctors, the chancellor has confirmed.
By David Hughes, PA Political Editor
source: PA
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