Budget latest: Reeves defends tax hikes as ‘everything has to be paid for’; Hunt leaves shadow cabinet

The Chancellor defended the £40 billion tax rise she announced in the Budget, telling Sky News her measures “must be paid for”.

Rachel Reeves welcomed measures such as raising the minimum wage and helping those on Universal Credit keep more of that income, saying: “I’m proud to have been able to do this.”

But she also pointed to a £22 billion financial black hole she said needed to be filled and criticized the previous Conservative government for cost overruns.

Nodding to the fact that the independent Office for Budget Responsibility clearly did not back her claim of a £22bn black hole, she said the Treasury had “now published a line-by-line report on it” and insisted: “This was our legacy.” “

She also pointed to compensation schemes, such as in the case of the contaminated blood scandal, which were “not funded”.

Funding such events is “the right thing to do,” she said.

“But you have to pay for everything,” she added.

Chancellor’s message to other parties

Asked what she wanted to tell the public after the huge budget, Ms Reeves accused the previous government of “mismanaging the economy” and said: “We are now drawing a line under this period.

“We are open and honest about public finances, getting them on a sustainable path, investing in our health service, and doing everything we can to protect workers.”

Referring to the fact that she pledged not to raise taxes in her manifesto, Ms Reeves said she could have “swept the Tory legacy under the rug” but chose not to.

“I understand that some of the wealthiest people in our country will pay more in taxes, but I believe these were the right decisions under the circumstances I faced,” she said.

“And if other parties don’t agree with these tax changes, they will need to explain how they will return our public finances to a stable trajectory or whether they will choose the path of irresponsibility that previous governments have taken over the last few years that have gotten us into this mess in where we are today.”