Rachel Reeves has defended her Budget, saying she acted to build more resilience into the economy. Rachel Reeves faced criticism over her claim of a £20 million gap in meeting fiscal rules. However, she said she does not need an investigation because official figures already clarified the numbers.
Although some reports suggested a “black hole” in public finances, the shortfall was smaller than first reported. By October, official numbers showed the shortfall had disappeared. Therefore, Reeves said she had to create more headroom in government finances. Headroom gives the government flexibility to respond to future economic problems.
Rachel Reeves told reporters that anyone who believed the public finances required no repair was mistaken. She added that her Budget simultaneously invested in the NHS and cut bills for families. She argued that these actions strengthened the economy and prepared it for challenges ahead.
Because of the controversy, opposition politicians asked the financial regulator to check whether the Treasury misled the public. Rachel Reeves rejected these calls, saying the numbers were published and transparent.
Prime Minister Sir Keir Starmer supported the Budget and said claims that Reeves misled voters were false. Downing Street confirmed that officials reviewed the data and approved the revenue-raising plans. They explained that revenue-raising remained necessary due to productivity downgrades and to maintain fiscal headroom.
In addition, Tory shadow chancellor Sir Mel Stride asked the regulator to investigate possible market abuse. Scottish National Party leader Stephen Flynn also urged a review, claiming the Budget briefings could have affected financial markets.
A Treasury spokesperson said Rachel Reeves made decisions to cut living costs, reduce hospital waiting lists, and increase headroom. Starmer will use an upcoming speech to highlight economic growth and long-term plans. He will also announce reforms to reduce unnecessary costs for building nuclear plants.
Overall, Rachel Reeves continues to defend her Budget choices. She said she focused on strengthening the economy, creating headroom, and supporting families.
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