Chancellor to signal cost-cutting moves, accuses Conservatives of fiscal ‘cover-up’

Rachel Reeves will signal Labour’s plans for cuts to government departments and the civil service, as the new administration aims to accuse Rishi Sunak of “covering up” economic problems.

The chancellor is due to address the House of Commons on Monday after a review of the government’s finances. He took office at the beginning of the month.

It was reported that Mrs. Reeves will reveal £20 billion “black hole” found in books – although the Conservative Party says it must have known about it before taking office.

Tune in to the Sky News special coverage of Ms Reeves’ speech from 3pm on Monday on Sky channel 501, Virgin channel 602, Freeview channel 233, the Sky News website and app or on YouTube.

Ms Reeves to reveal budget date this year sparks speculation Work are considering raising taxes in connection with this fiscal event.

Her speech will take place after 3pm, depending on what other business is in the Commons at the time.

However, an announcement on Monday will outline plans for public sector cuts aimed at saving money in the current financial year.

According to the Treasury, Ms Reeves “will announce immediate actions to restore economic stability and deliver savings to the Treasury’s budget this financial year”.

Ms Reeves is expected to say: “The time has come to face the public and tell them the truth.

“The previous government refused to make the hard decisions. They hid the true state of public finances. And then they ran. I will never do that.

“The British people voted for change and we will deliver it. I will restore economic stability. I will never stand by and let this happen again.

“We will repair the foundations of our economy so we can rebuild Britain and make every part of our country a better place.”

The Chancellor will announce the establishment of an Office for Valuable Spending (OVM) – funded from existing Civil Service budgets – to “end wasteful spending”.

OVM will present recommendations on how to save money from the state budget this year.

Read more:
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The Chancellor has prevented herself from filling the black hole

New reforms will be announced to boost “efficiencies” – a word that usually means cuts – across government departments and independent bodies such as the Prison and Probation Service, the Met Office, the Environment Agency and Her Majesty’s Treasury.

There will also be “immediate action” to stem “unnecessary spending” on consultants, as well as selling off “surplus assets” and quickly implementing previously announced improvements.

Ms Reeves is also expected to add: “I said before the election that we were facing the worst contraction since World War II.

“Taxes at 70-year highs. Debt through the roof. An economy just emerging from recession. I knew all of this. I was upfront with them during the campaign. And the tough choices it meant.

“But when I got to the Treasury three weeks ago, it became clear that there were things I didn’t know. Things the opposing party was hiding from the country.”

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The Chancellor also plans to return to the rule of one fiscal event a year in the UK to bring stability to markets.

It also intends to recommit to the government’s fiscal rules – which include not borrowing for current spending and ensuring that the debt falls by the fifth year of the projected interest rate.

Gareth Davies, shadow secretary to the treasury, said: “Rachel Reeves is trying to trick the British people into accepting Labour’s proposed tax rises.

“She wants to pretend that the Office of Budgetary Analysis (OBR), set up by the Conservatives and whose forecasts have been used to prepare the budgets of every recent Conservative government, does not exist to make a credible statement. Like her books, this statement is a copy and paste of what happened decades ago.

“But her words and actions to supposedly save taxpayers money are an insult when she secretly plans to raise taxes at the same time.”