Politics
Reeves Accuses Hunt of Financial Deceit as UK Faces £22bn Black Hole
Rachel Reeves refrained from outright labeling Jeremy Hunt as dishonest during her initial significant economic address in the Commons yesterday, yet she openly criticized him on Sky News today, accusing him of misrepresenting the UK's financial situation.
Political correspondent @alixculbertson
Tuesday, July 30, 2024, 9:
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The chancellor has accused her predecessor, Jeremy Hunt, of "lying," alleging that he intentionally concealed the true condition of the UK's financial situation.
Following her declaration of numerous budget reductions on Monday, Rachel Reeves criticized the Conservatives for leaving a £22 billion deficit, calling it "unforgivable."
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Speaking to Sky News, she claimed, "Jeremy Hunt intentionally concealed the real condition of the public finances from both the House of Commons and the nation."
"He was dishonest. Throughout the electoral campaign, they misrepresented the condition of government finances."
Ms. Reeves pointed out that during the campaign, the Conservatives pledged to reduce taxes, fully aware that the public finances were already facing a £22 billion deficit.
"She described it as extremely careless and irresponsible," she commented.
"It is inexcusable, and they must never be permitted to control power or manage public funds in the future."
Mr. Hunt expressed to Sky News that while he was certainly upset about being labeled dishonest, he felt primarily disappointed.
He commented, "I had a better opinion of Rachel Reeves; I even complimented her on election night for being a dedicated public servant."
"I believe she is capable of more than what she demonstrated."
"It's quite disheartening to see the new administration engaging in politics in such a manner. Labeling each other as liars only serves to tarnish the reputation of politics."
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During her address in the House of Commons yesterday, Ms. Reeves refrained from labeling Mr. Hunt as a liar, a term that, if used, could result in suspension for an MP.
However, she spoke freely during her interview with Sky News today.
Explore further: Insight: Analysis of the Chancellor's budget reductions
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Ms. Reeves reiterated on Sky News that the Conservative government failed to provide independent pay review bodies with guidelines on what was financially feasible this year.
The panels provide guidance to the government on annual salary recommendations for public sector workers, including NHS staff, based on directives they receive from the government, which is not obligated to follow these suggestions.
Ms. Reeves disclosed that it was only after assuming the role of chancellor that she realized the former administration had not established guidelines for affordability.
She stated that the expense of enacting the salary review panels' suggestions totals £9.4 billion, and she has requested that government departments cover £3.2 billion to mitigate the financial impact of resolving conflicts with public sector employees.
"She highlighted the consequences of inaction, noting that without change, we will persist in facing challenges in attracting and keeping military personnel, and in recruiting and retaining healthcare professionals like doctors and nurses, as well as other public sector employees."
"This also comes with a price."
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Ms. Reeves acknowledged that she faced tough choices on Monday, one of which was to stop the winter fuel allowance for certain retirees, a move that would save £1.5 billion annually.
She cautioned, "Tougher decisions lie ahead. I'm not targeting any specific group."
"Challenging decisions lie ahead this fall, yet it was crucial to make this decision yesterday to stabilize our public finances and tighten control over government expenditures."
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