Prime Minister Keir Starmer is set to personally defend Chancellor Rachel Reeves amid ongoing Conservative attacks over her ethics following the budget. Allies suggest their political fates are intertwined, with the Tories accusing Reeves of lying about the rationale behind record tax rises.
In a speech on Monday, Starmer will seek to shift focus to the government's long-term economic plan, arguing that the budget made the right choices for Britain. Writing in the Guardian, he highlighted measures including £150 off energy bills, NHS protection, and tackling child poverty by removing the two-child limit.
The row stems from Conservative claims that Reeves used reduced productivity forecasts from the Office for Budget Responsibility (OBR) as a smokescreen for tax rises. However, the OBR also upgraded wage and tax receipt forecasts, leaving a surplus rather than a deficit. Conservative leader Kemi Badenoch accused Reeves' allies of manipulating financial markets by briefing on 14 November that she had dropped plans to raise income tax rates due to better-than-expected OBR news.
OBR head Richard Hughes clarified the timeline in a letter to the Treasury select committee, noting that Reeves knew of the rosier outlook before her 4 November pre-budget speech warning of lower productivity consequences. This briefing flurry irked the independent forecaster.
Reeves argued she needed tax rises to increase her buffer against unexpected costs and protect fiscal rules. Polling from More in Common shows only 16% of voters think she is doing a good job. Starmer hopes voters will eventually feel the impact of higher public spending and deregulation, but time may be limited as the public seeks immediate improvements.
