Summary
Downing Street denied claims that Chancellor Rachel Reeves misled the public about the UK's financial situation before this week's Budget. The Office for Budget Responsibility told Reeves there was a financial surplus due to higher than expected tax income, yet she suggested potential tax increases. Later, the government decided against raising income tax rates, citing positive financial forecasts.
Key Facts
- Downing Street refuted accusations against Chancellor Rachel Reeves for misleading the public about public finances.
- The Office for Budget Responsibility informed Reeves in September about a financial surplus due to increased tax receipts.
- Reeves suggested potential income tax rate increases, citing weaker productivity and its impact on public finances.
- The government decided not to raise income tax rates, citing better than expected financial forecasts.
- Conservative leader Kemi Badenoch accused Reeves of lying to the public and facing a £20bn gap in finances.
- The Treasury assured that they had enough financial surplus to meet Chancellor Reeves' fiscal rules.
- OBR confirmed the positive financial position before Reeves' interventions and speeches.
- The PM's spokesperson stated that Reeves clearly outlined the financial challenges in her speeches.
