New Era, Tough Choices: Rachel Reeves Sets Date for Landmark October Budget Amid Economic Challenges

Rachel Reeves has declared that the initial budget from the Labour government will be unveiled in October. She noted that it will include comprehensive economic and fiscal projections from the Office for Budget Responsibility alongside the budget announcement.

Political journalist @alixculbertson

Monday, July 29, 2024, 18:

Rachel Reeves has declared that the inaugural budget from the new administration will be presented on October 30.

During an extensive speech in the Commons, the chancellor announced the date of the budget, marking Labour's initial budget since their electoral victory on July 4th. She charged the former Conservative government with deceiving the public regarding their intended public spending levels.

Ms. Reeves delivered her remarks following a Treasury analysis of government accounts, revealing, according to her, a £22 billion deficit.

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The Tories view Ms. Reeves' remarks as setting the stage for possible tax increases in the upcoming budget, even though Labour had promised not to raise significant taxes during their electoral campaign.

Ex-chancellor Jeremy Hunt charged Ms. Reeves with unfairly blaming the Conservative administration, alleging it was a pretext to increase taxes and scrap initiatives.

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Ms. Reeves stated that the budget, outlining the government's economic strategies, will be presented together with "the complete economic and fiscal forecasts from the Office for Budget Responsibility."

She described it as "a budget designed to repair the core elements of our economy."

"She added that the budget will reflect the principles upon which the new government was elected."

The chancellor vowed to handle public funds responsibly, making sure each pound is utilized effectively.

Ms. Reeves emphasized her commitment to guaranteeing that all government expenditures are cost-effective.

She vowed not to increase taxes for the working class.

"She stated that there will be no rise in national insurance, nor in the basic, higher, or additional income tax rates, or VAT, echoing Labour's promises from the election campaign."

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The chancellor announced that her initial budget will adhere to three key guidelines: complying with Labour's "fiscal rules," achieving a balanced current budget, and reducing the debt relative to the economy's size by the conclusion of the forecast period.

Preparing for the reception of unwelcome news, she stated, "To be frank, difficult compromises are still ahead."

Ms. Reeves announced the initiation of an extensive spending review projected to span multiple years. This review will establish budget allocations for various departments for a minimum of three years and will cover the financial plans for the current and upcoming year, coinciding with the budget set for October 30.

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