Rachel Reeves is facing another potential sleaze investigation after Nigel Farage accused her of a “sustained misrepresentation” of public finances. The Reform UK leader reported the Chancellor to the ethics watchdog, claiming she orchestrated a campaign to portray the finances as collapsing to justify a £30 billion tax hike in the Budget.
Farage’s letter to the adviser on ministerial standards argues that Reeves broke the Ministerial Code by failing to give accurate information to Parliament. He said the public now faces the heaviest tax burden in generations based on what appears to be a misrepresentation of the true fiscal position, given that the Office for Budget Responsibility had told her in October there was no deficit and a £4.2 billion surplus.
The Chancellor also faces possible investigation by the Financial Conduct Authority after the Conservatives accused her of “possible market abuse” due to briefings that caused volatility in the City. Kemi Badenoch has demanded Reeves explain the extent to which she misled the public, and has called for her resignation.
Internal backlash has emerged, with a senior Labour figure telling The Times that the Cabinet was not told about the real OBR forecasts. Former Bank of England chief economist Andy Haldane said an inquiry into the Budget is needed. Reeves has denied any wrongdoing, telling the BBC she did not mislead anyone.
