Chancellor Rachel Reeves has rejected claims she misled the public about the reasons for the record tax increases announced in last week's budget. Speaking on Sunday, she insisted the £26bn in tax rises were necessary to build economic resilience and protect public spending.
Opposition MPs have called for her resignation after the Office for Budget Responsibility (OBR) revealed that stronger wage growth and tax receipts offset a downgrade in productivity expectations. Critics argue Reeves overstated the fiscal black hole to justify breaking manifesto commitments.
Reeves told the BBC she increased headroom against fiscal rules from £9.9bn to £21.7bn to reduce the risk of future tax rises. She said a smaller surplus would have been the lowest ever delivered, adding: 'I was clear I wanted to build up that resilience.'
Conservative leader Kemi Badenoch accused Reeves of misleading the public and called for her resignation. Badenoch defended her personal attacks on the chancellor, saying her role is to hold the government to account, not provide emotional support.
Downing Street backed Reeves, with a source calling claims of misleading 'categorically untrue'. Prime Minister Keir Starmer is expected to defend the budget in a speech on Monday, focusing on reducing living costs and inflation.
