Rishi Sunak launched a blistering attack on Rachel Reeves shortly after she set out the Autumn Budget, saying it contains “broken promise after broken promise”.
Sunak, who previously worked as Chancellor when Boris Johnson was prime minister, took aim at the series of tax hikes set out by Reeves in Labour's first Budget since coming to power.
“Time and again, we Conservatives warned Labour would tax, borrow and spend far beyond what they were telling the country and time and time again they denied they had such plans, but today the truth has come out”, he said.
“Proof they planned to do this all along. Today’s Budget sees the fiscal rules fiddled. Borrowing increased by billions of pounds, inflation-busting hand outs for trade unions.
Rishi Sunak was furious at the Budget announcement
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“Britain’s poorest pensioners squeezed, welfare spending out of control and a spree of tax rises they promised the working people of this country they would not do.
“National Insurance up, capital gains tax up, inheritance tax up, energy taxes up, business rates up, first-time buyer stamp duty up. pensions tax up.
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Reeves and Starmer watched on with grins on their faces as Sunak launched his tirade
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“They have fiddled the figures!”
The Chancellor blamed the previous Tory government, which was headed up by Rishi Sunak in its final throes, for a £22 billion ‘black hole’.
Rishi Sunak spoke in the Commons as leader of the opposition for the final time
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She said difficult decisions had to be made in order to avoid a financial crisis.
One of the measures was a £25 billion raid on employers’ national insurance contributions, with higher rates and a lower starting threshold.
Reeves also confirmed changes to inheritance tax, including bringing pension pots within the tax from April 2027.
Labour stress they are committed to helping “working people”, and Reeves set about proving this by promising to end the freeze on income tax and national insurance thresholds.
As earnings increase, maintaining the threshold freeze would have seen more people dragged into paying tax or shifted into higher bands.
“From 2028-29, personal tax thresholds will be uprated in line with inflation once again,” she said.
“When it comes to choices on tax, this Government chooses to protect working people every single time.”
