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Reeves moves fast to tackle £22bn budget shortfall ‘covered up’ by Tories
The Guardian ^ | July 29 | Pippa Crerar, Larry Elliott and Peter Walker

Posted on 07/29/2024 3:21:28 PM PDT by RandFan

Rachel Reeves has cut winter fuel payments for 10 million wealthier pensioners as she sought to plug a £22bn black hole in the public finances she said was “covered up” by the Conservative government, while hinting at tax rises in her first autumn budget.

The chancellor also shelved the long-delayed cap on what people would pay for social care as she ignited a bonfire of Tory policies she said would be needed to deal with the deficit, telling MPs: “If we cannot afford it, we cannot do it.”

Yet almost half of the shortfall, £9.4bn, was a result of her decision to fund above-inflation public-sector pay recommendations in full, helping to reverse years of declining wages and see off the threat of industrial action.

Her response to a Treasury internal audit commissioned by Labour within days of taking office heralds a brutal first budget on 30 October, when she is expected to increase some taxes as well as cutting welfare and public spending.

“We don’t want to increase taxes but we are in a position where there was a £22bn gap between the money the previous government spent and what they budgeted for, and so we are going to have to make difficult decisions,” she told a Treasury press conference.

(Excerpt) Read more at theguardian.com ...


TOPICS: Miscellaneous; News/Current Events; United Kingdom
KEYWORDS: fakenews
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This is CRAZY Freepers as I have sympathy with a LABOR Treasury Secretary.

She has inherited a mess and is telling the truth about the black hole.

The Conservatives (CINOs) have left a mess.

She is right about this.

However, they will now make their decisions as to who will be the winner or losers.

It's unreal what a mess the Conservatives have left and a bit rich for them to complain about the budget.

The lesson MUST be learned: Govern like a conservative .

1 posted on 07/29/2024 3:21:28 PM PDT by RandFan
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To: RandFan

“Yet almost half of the shortfall, £9.4bn, was a result of her decision to fund above-inflation public-sector pay recommendations in full…”


2 posted on 07/29/2024 3:26:43 PM PDT by Empire_of_Liberty
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To: Empire_of_Liberty

Yes she’s making a decision to pay the junior doctors more as I said they will make their moves.

I won’t agree with most of their policies

But we’re here because the Conservatives ran up a huge deficit

Maybe if they didn’t she wouldn’t even be in office.


3 posted on 07/29/2024 3:31:40 PM PDT by RandFan
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To: Empire_of_Liberty

Need to govern like a conservative

It’s frustrating and predictable.

It’s their decision to run a huge deficit. COVID didn’t help but again they made their decisions to shut down the country over it

All of it is down to poor decisions and that’s why the Left are in office with the moral high ground.

It’s the only reason


4 posted on 07/29/2024 3:39:11 PM PDT by RandFan
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To: RandFan

I’m sure the invaders aren’t going to lose a farthing of their welfare and accommodations.


5 posted on 07/29/2024 3:39:33 PM PDT by VTenigma (Conspiracy theory is the new "spoiler alert")
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To: VTenigma

It’s a good point what will happen with the invaders she is scrapping the deportation policy to Rwanda

I’ve no idea what the plan is for them because it’s clearly unsustainable to keep putting them in hotels but looks like that is what they will do


6 posted on 07/29/2024 3:45:50 PM PDT by RandFan
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To: RandFan
“We don’t want to increase taxes but we are in a position where there was a £22bn gap between the money the previous government spent and what they budgeted for, and so we are going to have to make difficult decisions,” she told a Treasury press conference.

I can't see the problem here, just print more money like we do. Its not like it's ever resulted in inflation.

As the Duke's said in Trading Places, "Turn those machines back on".

7 posted on 07/29/2024 3:46:05 PM PDT by usurper (AI was born with a birth defect.)
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To: RandFan

The Left has the moral high ground?

This is just more “ascendancy of the Left”.

They feel strong, right now. That’s why they sterilize children for China.


8 posted on 07/29/2024 3:51:45 PM PDT by Empire_of_Liberty
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To: usurper

“difficult decisions” for that them means slightly higher taxes and their own priorities.

The taxes are already the highest in 50 odd years (thanks CINOs) so I dont see what they can do

She is axing lots of projects. Turns out there is room for cuts when the hand is forced


9 posted on 07/29/2024 3:51:49 PM PDT by RandFan
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To: Empire_of_Liberty

They’re lecturing the Conservatives on finances

It’s strange and for them and ought to be embarrassing


10 posted on 07/29/2024 3:54:05 PM PDT by RandFan
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To: RandFan

Crisis or no crisis, there’s always money for government employees.


11 posted on 07/29/2024 3:56:35 PM PDT by ComputerGuy (Heavily-medicated for your protection)
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To: RandFan
Is this the same government that just announced that they want to see Netanyahu arrested?
12 posted on 07/29/2024 3:57:26 PM PDT by Gay State Conservative (Never Trust A Man Whose Uncle Was Eaten By Cannibals)
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To: ComputerGuy

She will look after those of course....

It looks like she’s axing many capital projects.

Personally I dont think it will cover that shortfall and she wont make truly difficult decisions

They will have their own crisis sooner or later


13 posted on 07/29/2024 4:00:15 PM PDT by RandFan
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To: RandFan

They lecture while they pay off their own.

Don’t be so single-issue. She is not in there because “conservatives ran up deficits”. She is in there because the Left is strong, right now and, frankly, US elections need this, from their view. They work as a team, the Right eats their own.

Reagan and Trump ran up debts, too. Smart money borrows money when it’s free. It’s what you do with it that counts.

I’ll admit that throwing it at defense contractors isn’t looking any better than throwing it at unions, right now.


14 posted on 07/29/2024 4:02:48 PM PDT by Empire_of_Liberty
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To: Empire_of_Liberty

If the Conservatives did a better job she wouldn’t be in office

Boris the idiot shut down the whole country over COVID then partied in Downing Street

It was inevitable they were getting thrown out and their own fault.

They lost by historic proportions not because the population is suddenly leftist but because Conservatives did a poor job

All Labour had to do is look merely competent to the average joe and they did that.


15 posted on 07/29/2024 4:07:40 PM PDT by RandFan
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To: RandFan

There are no conservatives in Brit politics. Just different flavors of totalitarian socialists. It is a huge mistake to think that Brit conservatives bear any relation to American ones.


16 posted on 07/29/2024 4:54:36 PM PDT by Seruzawa ("The Political left is the Garden of Eden of incompetence" - Marx the Smarter (Groucho))
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To: RandFan

“...she is expected to increase some taxes as well as cutting welfare and public spending.”


Labour comes in a cuts welfare from levels set by the “Conservatives”.

Same as Jean Chretien in the 1990’s.

Even more than leftists and liberals, fake “conservatives” are the real enemy.


17 posted on 07/29/2024 4:57:33 PM PDT by Reverend Wright ( Everything touched by progressives, dies !)
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To: RandFan

Hint. They weren’t conservatives any more than the party of Bush, Cheney, and McCain.


18 posted on 07/29/2024 5:08:56 PM PDT by AndyJackson
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To: AndyJackson; Reverend Wright

This is true and there are parallels

They end up governing poorly and not as conservatives.

Then wonder why they get thrown out and blamed

Sigh... Frustrating.


19 posted on 07/29/2024 10:27:18 PM PDT by RandFan
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To: RandFan; AndyJackson

What the Canadian CINOs do is the same as the RINOs: they blame their own voters for “extremism” and accuse them of believing in “conspiracy theories”.

This was O’Toole after he was thrown out due to hedging and support/oppose during the trucker protest.

What an a$$hole !

https://www.thestar.com/politics/federal/erin-o-toole-warns-mps-they-re-on-a-dangerous-path-as-he-makes-final/article_ec1429ae-ba50-561f-ad19-27e94de16c2f.html


20 posted on 07/29/2024 10:46:32 PM PDT by Reverend Wright ( Everything touched by progressives, dies !)
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