Watch: Rachel Reeves denies lying about Budget black hole to justify tax hikes
Alex Croft30 November 2025 22:40
Reeves declares she will remain as chancellor
Sir Keir Starmer’s speech will look to move on from a simmering row over whether chancellor Rachel Reeves lied about the scale of the government’s fiscal challenge.
During the morning media round on Sunday, Ms Reeves denied lying about the size of the Budget black hole to justify her £26bn tax hikes.
Pressed by Trevor Phillips on Sky News about whether she lied to the public by not making it clear she had a £4bn surplus instead of a deficit, she hit back, saying: “Of course I didn’t”.
The Office for Budget Responsibility (OBR) on Friday said it had informed the chancellor as early as September 17 that the deficit had improved, and told her in October it had been eliminated altogether, but Ms Reeves suggested tax rises were still necessary in November to tackle a £20bn gap.
The chancellor denied breaking from the manifesto while speaking to Laura Kuenssberg: “We didn’t break the manifesto.
“But am I asking working people to pay a bit more? Yes, I am.”
She also affirmed that she felt she would be chancellor for years to come.
Alex Croft30 November 2025 22:39
Defiant Starmer to defend Budget after Reeves forced to deny lying about black hole to justify tax hikes
In what will be seen as an attempt to prop up his embattled chancellor, the prime minister will on Monday argue that Ms Reeves has provided economic stability by raising billions of pounds more in so-called fiscal “headroom” to protect against future market shocks.
He will also defend her decision to spend billions more on benefits, rejecting the notion of trying to look “tough” on welfare for the sake of politics – although he will also pledge to reform the system and get more young people who are currently signed off sick into work.
Our Whitehall editor Kate Devlin writes:
Alex Croft30 November 2025 22:37
