UK Finance Minister Rachel Reeves pledged to make “necessary”, “urgent” and “extremely difficult” choices to restore the country’s economic stability.
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UK Finance Minister Rachel Reeves on Monday declare The cuts came after details of how the newly elected Labor government inherited a projected £22 billion ($28.2 billion) overspending from the centre-right Conservative Party.
In a much-anticipated statement in the House of Commons, Reeves pledged to make “necessary”, “urgent” and “extremely difficult” choices to restore the country’s economic stability.
The finance minister said the centre-left government would cancel plans to “restore the rail fund”, cancel plans to build a tunnel at Stonehenge and review hospital expansion plans announced by former Conservative Prime Minister Boris Johnson.
Reeves said she would scrap the universal winter fuel payment for pensioners to save further money.
“We can’t do this if we can’t afford it,” Reeves said, adding that investment cuts would not be enough to make up the shortfall. She warned that “tough decisions” would still be made on spending, benefits and taxes.
The finance minister also said she had canceled plans to sell nativ westminster bank She said the proposals put forward by her predecessor Jeremy Hunt were not “good value for money”.
Reeves said she plans to release her first annual budget on October 30, which will be the first major fiscal event of the new administration.
The finance minister has previously ruled out increasing the main sources of government revenue such as income tax, national insurance, value-added tax or corporation tax. However, given her party’s pledge to increase state investment and public sector pay, Reeves must orchestrate a delicate balancing act.
Responding to Reeves’ comments, Shadow Treasurer Jeremy Hunt said: “Today she shamelessly tried to lay the groundwork for a tax hike that will fool absolutely no one.”
Hunt also criticized the finance minister for saying the situation around public finances was new information to the government.
Reeves has held the position since centre-left Labor safe won a parliamentary majority in the country’s general election earlier this month. Her comment was seen This is likely to set the tone for the rest of her career as chancellor.
Reeves told CNBC on Friday explain A Labor government will be the “most pro-growth, pro-business” government the country has ever seen.
—CNBC’s Karen Gilchrist contributed to this report.
