In a fiery debut at the despatch box, Chancellor Rachel Reeves has promised to wield an 'iron discipline' over the nation's finances, declaring her first budget will be the cornerstone of rebuilding an economy left 'on its knees' by the Conservatives.
The new Chancellor used her first major parliamentary showdown to lay out her fiscal philosophy, directly blaming the previous government for the dire inheritance of depleted public services and strained finances. Her commitment signals a major shift in Treasury strategy, placing strict fiscal responsibility at the heart of the new government's agenda.
A New Era of Fiscal Responsibility
Reeves announced that her first budget, expected in the autumn, will be governed by a new, stringent set of fiscal rules. This move is designed to restore market confidence and provide a stable foundation for long-term growth, distancing her approach from the turbulence of the Truss premiership.
'We will bring about the change that our country desperately needs, but we will do so always with iron discipline,' she stated, addressing the Commons. 'That is why we will set out new fiscal rules for the budget in the autumn.'
Confronting the Tory Legacy
The session of Prime Minister's Questions saw Labour leaders launch a coordinated attack on the economic legacy of the past 14 years. Prime Minister Keir Starmer set the stage, accusing the Tories of 'hiding the scale of the mess' they created.
He pointed to a litany of failures left behind:
- Local councils across the country facing effective bankruptcy.
- A prisons system in utter crisis, overflowing with inmates.
- An NHS burdened by a record 7.6 million people on waiting lists.
- Crumbling schools and public infrastructure.
Starmer emphasised that the scale of the challenge had been deliberately obscured, leaving the new government with the task of delivering tough truths after the election.
Rishi Sunak's Defence
In response, former Prime Minister Rishi Sunak mounted a defence of his party's record. He pointed to the global pandemic and the energy crisis triggered by the war in Ukraine as primary factors for the current economic situation.
Sunak criticised the new government's approach, claiming Labour's policies would lead to 'higher taxes for every family in our country' and jeopardise the nation's energy security. His rebuttal framed the Conservative era as one of necessary, tough decision-making in the face of unprecedented global shocks.
The exchange sets the stage for a defining autumn budget, where Chancellor Reeves will be under immense pressure to balance her promises of growth with the 'iron discipline' she has now promised to the British public.
