Chancellor Rachel Reeves has forcefully denied accusations she misled the British public about the reasons behind last week's controversial budget, which introduced £26 billion in tax increases to record levels.
The Budget Defence
Appearing on the BBC's Sunday with Laura Kuenssberg, Reeves insisted the tax rises were necessary to create £21.7 billion in fiscal headroom against her own fiscal rules, while also protecting public services from future cuts. This explanation marked a significant shift from her pre-budget messaging, where she had attributed expected tax increases to anticipated downgrades in economic growth forecasts.
The Chancellor revealed she had deliberately increased her fiscal buffer from £9.9 billion to £21.7 billion to build economic resilience. "I know that some people are suggesting that there was a small surplus that the OBR published on Friday," Reeves told Kuenssberg. "But if I was on this programme today and I was saying £4bn surplus is fine, there was no economic repair job to be done, I think you would rightly be saying that's not good enough."
Political Fallout Intensifies
The controversy stems from the Office for Budget Responsibility's final assessment, which did indeed downgrade productivity forecasts but found that stronger-than-expected wage growth and tax receipts would more than compensate. This revelation has triggered a political storm, with Conservative leader Kemi Badenoch leading calls for Reeves's resignation.
"The chancellor called an emergency press conference, telling everyone about how terrible the state of the finances were, and now we have seen that the OBR had told her the complete opposite," Badenoch stated during her own BBC appearance. "Because of that, I believe she should resign."
The Conservative leader defended her combative tone in parliament, where she accused Reeves of "wallowing in self-pity and whining about misogyny and mansplaining." Reeves acknowledged these personal criticisms made her "uncomfortable" but remained defiant about her position.
Starmer's Support and Future Plans
Prime Minister Keir Starmer is expected to vigorously defend his chancellor in a major speech on Monday, where he will also announce new measures to boost economic growth. Downing Street sources have already thrown their weight behind Reeves, stating categorically that no misleading occurred regarding the need for revenue increases.
Starmer's address will include a new push to cut business regulation, particularly focusing on reforming rules for building nuclear power plants and reviewing processes for large infrastructure projects under Business Secretary Peter Kyle.
Despite the mounting pressure, Reeves expressed confidence in her position, reflecting on her political journey: "I was an MP in opposition for 14 and a half years. I have been underestimated all the way through my life. As a young girl from an ordinary background, people make assumptions about me. I've defied them before, and I will defy my critics again."
