Rachel Reeves was branded last night, after she insisted that her economic plans are working because official growth reasons were halved.
On a humiliating day before the Chancellor, she was forced to deliver a £ 14 billion package of emergency expenditure to prevent them from breaking tax rules that she wrote only five months ago.
And economists warned that public finances are so precarious that the Chancellor should probably return for a new round of tax increases in the fall.
If it is insisted on the potential for future tax increases last night, Mrs. Reeves would not exclude them and to tell reporters: 'I will not write to budgets for four years'.
The Chancellor insisted that her plan 'works', but said that Great -Britain was facing new challenges of 'a world that changes before our eyes'.
But Kemi Badenoch said that the Chancellor was 'misled' – and should accept the debt for the deep growth of Great Britain.
And the economic watchdog said that the plans of the Chancellor can be derailed as quickly as possible if Donald Trump penetrates with an endangered rate war.
The office for budget responsibility warned that enormous tax increases that will be introduced by Mrs. Reeves next week will push the total tax burden of Great Britain to a record high.
Chancellor of the treasury Rachel Reeves MP (photo) leaves 11 Downing Street to present her spring statement to the parliament on Wednesday
The Chancellor was completely smiling on the way to parliament, even though she was forced to deliver a package of £ 14 billion to cuts on emergency spending to prevent
Reeves emphasized the grim realities with which the country was confronted while she delivered her spring statement to the commons and claimed that the 'world has changed'
Tory leader Mrs Badenoch said to the mail: 'The emergency budget of Labor is a direct consequence of the economic chaos created in Downing Street by Rachel Reeves and Keir Starmer.
“With growth halved, inflation rises, taxes on record highs and unemployment on the up, Rachel Reeves must be misled if she thinks her plan is working.”
It came as:
- The OBR lowered its growth rousing spelling for this year from 2 percent to just one;
- The Chancellor was confronted with a growing work of work after figures have shown that its welfare savings will float 250,000 people into poverty, including 50,000 children;
- Treasury Chief Secretary Darren Jones was encouraged to apologize after comparing cuts in disability benefits to reduce the pocket money of his children;
- Mrs. Reeves admitted that the costs of living crisis 'are still very real' because new predictions suggested that inflation will hit 3.8 percent this summer;
- Official predictions showed that next year the living standards will stagnate as tax increases; The OBR warned that Labor's controversial employee rights charter 'probably cost' jobs, raised prices and damaged productivity;
- Mrs. Reeves defended her decision to accept £ 600 tickets for a Sabrina Carpenter concert on the grounds of security, but acknowledged that it looked 'a bit strange';
- Experts asked her claim that people will be an average £ 500 better towards the end of the decade;
- The Chancellor promised to make Great Britain a 'defense industrial super power' because she promised an extra £ 2.2 billion for military expenditures.
Mrs. Reeves had originally promised not to make major interventions to guide the spring prediction of the OBR about the economy, and said she wanted to return to keeping one tax event per year 'to give families and companies stability and security'.
Kemi Badenoch speaks on Wednesday during the Prime Minister's questions. She burned Rachel Reeves Delusonus to insist that her economic plans are working
Chancellor Rachel Reeves leaves 11 Downing Street in London before the spring declaration on Wednesday
Chancellor Rachel Reeves on his way to delivering her spring statement in which she tried to blame world events on the economic misery of the UK
But the dive in the economic fortune since the budget forced its hand, with the OBR warning she would violate her own tax rules, unless she acted after a £ 14 billion deterioration in public finances since October.
The Chancellor spoke yesterday and tried to blame world events.
“The global economy has become more uncertain, making uncertainty at home as trading patterns become more unstable and the loan costs rise for many major economies,” she said.
Mrs. Reeves adhered to her promise not to increase taxes further after a record of £ 40 billion in new taxes in the budget – a movement accused of killing the VK's growth views. Instead, she cut £ 3.4 billion from well -being, cut -cut government spending and ordered a government efficiency drive in an attempt to compensate for the £ 14 billion deficit.
The OBR has upgraded its growth reasons for later years, partly on the basis of the fact that the reforms of government planning succeed in supplying a large increase in housing.
But the total GDP growth is still lower than it was at the time of the budget of the Chancellor in October.
Shadow Chancellor Mel Stride said that the decline of public finances under work was 'stunning' and accused Mrs. Reeves of trying to shift the debt to 'someone else except her'.
He said MPs that she was' the architect of her own accident 'and added:' She borrowed and spent and burdened as if it were the 1970s. No wonder that the Chancellor has refueled the economy, no wonder we have an emergency budget, all because of her choices. '
Economists warned that Mrs. Reeves by leaving only £ 9.9 billion of 'headroom' against her tax rules, probably more tax increases in the autumn had to return.
The OBR said there was a chance of 50:50 that the Chancellor should come back for more.
Paul Johnson, director of the Institute for Fiscal Studies, said: 'We can have another blockbuster autumn budget. What the Chancellor has almost guaranteed is for another six months of harmful speculation and uncertainty about tax policy. '
Rob Wood, British economist at Pantheon Macro economy, said that the 'dangerous' prospects meant 'further tax increases and borrowing are coming'.
Tom Clougherty, from the Institute of Economic Affairs, said that the Chancellor's measures amounted to little more than 'rearranging the sun loungers on the Titanic'.
