Chancellor Rachel Reeves has taken a direct swipe at Labour leadership contender Andy Burnham, warning that his economic policies would be disastrous for the UK. In a pointed remark, Reeves highlighted Burnham's inability to explain her three fiscal rules, suggesting he cannot be trusted with the nation's finances.
Reeves Defends Her Record
Reeves, who has overseen around £70 billion in tax increases, defended her approach by blaming Conservative profligacy for the need to raise taxes. She stated that the only way to stop Britain being "in hock" to bond markets is to borrow less, a clear dig at Burnham's previous comments on the same issue.
Despite her own challenges, including rising borrowing costs and a near-£3 trillion debt pile, Reeves argues that she is the only Labour figure the bond markets trust. When she broke down in tears in Parliament, borrowing costs spiked as investors feared her departure, a moment that ultimately saved her position.
Burnham's Leadership Bid
Burnham launched his leadership campaign with pledges of higher taxes and spending, though he has since softened his stance ahead of a by-election. Reeves warns that if Burnham becomes prime minister, he would likely replace her with energy secretary Ed Miliband, whom she describes as a "complete zealot" for taxpayers.
Reeves emphasised that Burnham could not even recall her three fiscal rules when questioned, revealing his casual attitude toward borrowing. She argues that his plans would lead to a gilts crisis and currency meltdown, making her the last line of defence for economic stability.
In a final jab, Reeves said: "Burnham can't be trusted. Ed Miliband even less so. It's a mark of how far Labour has fallen that I am all that stands between Britain and going bust."
