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Labour and the Conservatives have been locked in a row over who is to blame for the lack of money in the public purse.<\/p>\n
In response to Ms Reeves’ podcast interview, shadow chancellor Jeremy Hunt wrote on the social media platform X: “By refusing to take the difficult decisions needed, Rachel Reeves will do what she planned all along like every Labour chancellor in history – raise your taxes.”<\/p>\n
On Monday, however, Ms Reeves had said the Conservatives’ “undisclosed” previous spending had forced her to axe the winter fuel allowance and make billions in other cuts.<\/p>\n
Mr Hunt has denied this, saying the last government was “open” about the public finances.<\/p>\n
He insisted Labour’s decisions were a choice and criticised the government’s spending announcements since winning power.<\/p>\n
The National Wealth Fund, GB Energy, and public sector pay rises added up to billions, he said.<\/p>\n
“If you make those choices, you\u2019re going to have to put up taxes and she should be upfront that those are her decisions,” he told BBC Breakfast on Tuesday.<\/p>\n
The Institute for Fiscal Studies (IFS) has said some of Labour’s claims of hidden spending by the previous government “appear” to be correct.<\/p>\n
This includes \u00a36.4bn on the asylum system, including the Rwanda deportation scheme, a number that IFS director Paul Johnson called “huge”.<\/p>\n
However, he added that “half of [the] spending ‘hole’ is public pay over which government made a choice and where pressures were known”.<\/p>\n
Labour has already confirmed some tax rises and the chancellor has previously alluded to “difficult decisions” that need to be made.<\/p>\n
On Monday, Ms Reeves also announced a windfall tax on oil and gas companies, in addition to the VAT on private school fees – both of which were manifesto commitments.<\/p>\n
In response, Liberal Democrat Treasury spokesperson Sarah Olney urged Labour to go further and make large companies “pay their fair share” of tax.<\/p>\n<\/div>\n<\/div>\n
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