Chancellor Accuses Conservatives of Concealing £22bn Funding Gap

In a significant revelation, Chancellor Rachel Reeves has accused her Conservative predecessor of concealing a £22 billion funding gap for the current financial year. During a session in Parliament, Reeves stated that an investigation into Labour's inherited spending plans uncovered a "cover-up" by the previous government, prioritizing party interests over national welfare. This allegation is based on findings from Treasury officials, which suggest that critical financial information was withheld from the independent Office for Budget Responsibility (OBR) prior to the March budget. Reeves highlighted that the Conservative government had made numerous spending commitments without adequate financial backing, leaving Labour to address the resulting fiscal shortfall. To mitigate the impact of this "black hole," she announced plans to recover £5.5 billion of the gap this year and an additional £8 billion next year. A comprehensive budget is scheduled for October 30, where further measures will be detailed. In line with Labour's election manifesto, Reeves ruled out increases in income tax, national insurance, and VAT, as well as a wealth tax. Additionally, she announced the scrapping of the Advanced British Standard qualification, a legacy of former Prime Minister Rishi Sunak, citing a lack of funding. Furthermore, plans for a retail share offer to divest the taxpayer's stake in NatWest were also abandoned, as such a sale would not provide value for money. Despite the financial challenges, Reeves confirmed her commitment to fully accept the recommendations of public sector pay bodies.