Rachel Reeves found herself in a rather uncomfortable position on Sky News today when journalists reminded her of her own words from last year, pledging she “wouldn’t be back for more” after a record-breaking tax increase.
Footage showed the Chancellor from a year ago explaining that the £40 billion tax hike had “wiped the slate clean,” and insisting there would be no need for another Budget like it.
Touring studios to defend her latest fiscal package, Reeves was confronted directly by presenter Trevor Phillips, who asked bluntly, “That wasn’t true, was it?” The Chancellor appeared flustered, citing productivity downgrades flagged by the Treasury’s watchdog, the Office for Budget Responsibility (OBR), as a key factor.
OBR Forecasts Complicate the Narrative
The independent OBR had actually warned Reeves months ago that the productivity hits were largely offset by better-than-expected tax receipts.
By late October, the watchdog was forecasting a small government surplus, meaning the only reasons for the red ink were Labour’s own policy choices, including adjustments to winter fuel payments, benefits, and the two-child benefit cap.
Reeves maintained that the latest Budget wasn’t on the same scale as last year’s, but said circumstances had shifted, requiring citizens to “contribute more.”
She repeatedly stressed that the productivity downgrades were beyond her control, even as Phillips pressed her that her public statements didn’t align with the facts.
Dragging the Prime Minister Into the Debate
Amid growing criticism, Reeves also invoked Prime Minister Keir Starmer, insisting he was fully briefed on her decisions.
She blamed the OBR’s forecasts for her choice to implement a further £30 billion in taxes, despite private briefings indicating no structural financial gap existed.
She defended her warnings about the state of public finances, arguing that her “fear-mongering” was meant to reassure markets, not mislead the public.
Yet the timing and tone of her public statements—highlighting a supposed black hole in the budget—clashed with the OBR’s internal advice that surpluses were projected.
Clash With the Opposition: Kemi Badenoch Speaks Out
The Chancellor’s appearance on the BBC sparked a tense encounter with Opposition leader Kemi Badenoch, who accused Reeves of misleading the public.
Reeves looked away as Badenoch confronted her on-screen, later complaining that she had been made “uncomfortable” by the sharp questioning.
Badenoch, however, stood firm, saying: “My job is to hold the Government to account, not provide emotional support for the Chancellor.”
She argued that Labour ministers “like to dish it out, but they can’t take it,” calling for Reeves to resign over “telling lies” about the Budget.
A Disagreement Over Policy vs. Personality
Reeves insisted she focuses on policy rather than personal attacks, claiming her discomfort stemmed from Badenoch’s approach.
She contrasted this with her own principle of staying away from personality politics, even noting her previous praise for the Truss-Kwarteng Budget as an example of her consistency.
Badenoch dismissed the claims of overreach, pointing out past occasions when Reeves and other Labour figures had criticized ministers personally.
She emphasized that her scrutiny is about competence, not personal gripes, and underscored the consequences of Reeves’ decisions on taxpayers: “She was raising taxes to pay for welfare… on the backs of people working very hard and getting poorer.”
Calls for Accountability and Transparency
Badenoch pressed for investigation into Reeves’ tactics, suggesting the Budget was deliberately framed to soften public reaction to tax increases.
Behind the cameras, however, photos later hinted that the two may have shared a light moment, even amid the public tension.
With both sides digging in, the fallout from Reeves’ latest Budget is shaping up to be a test of political credibility and public trust—one that could define Labour’s economic narrative heading into the new year.
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