The chancellor cannot rule out more tax rises in the next five years, despite raising the burden to its highest level since comparable records began.
Speaking to Sky News following Labour’s first fiscal event since 2010, Rachel Reeves said it would be “irresponsible” to promise there will not be further tax rises.
However, she suggested that the scale of today’s tax hike – £40bn – was a “once in a parliament” event.
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10:58
Watch the full interview
Speaking to Sky News political editor Beth Rigby, Ms Reeves said: “I’m not going to make a commitment to never change taxes again.
“That would be irresponsible.
“But this is a once-in-a-parliament budget to wipe the slate clean after the mess that the Conservatives have left us.”
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The chancellor was asked if she accepted that by raising taxes in such a drastic fashion, she had broken Labour’s manifesto – the document in which a government lays out its policy position before an election.
“I accept that this is a big and a substantial budget,” the chancellor answered.
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2:48
Budget 2024: Key takeaways
“It wasn’t the budget that I was expecting to deliver.
“When I became chancellor on 5 July, I didn’t think that any government would be so reckless to have £22bn of unfunded commitments.”
An analysis provided by the OBR did not confirm Ms Reeves assertion of a £22bn “black hole” – saying it was impossible to calculate exactly how much money the Treasury had not told the watchdog about.
But it did say the March forecast would have had to be redone if they had been told about spending pressures not mentioned to them at the time.
Government documents released today broke down the pressures – including £7.3bn for health and social care, £3,1bn for education, £7.1bn for the Home Office and £4.4bn for defence.
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‘This budget raises taxes by £40bn’
Speaking to Sky News, Ms Reeves defended pay rises awarded to the public sector since Labour took power.
She said the last government set the remit for the pay review bodies but “hadn’t set an affordability criteria”.
And the chancellor said the huge injection of cash into the NHS – more than £20bn – was needed because otherwise appointments would have to be reduced.
‘No one’s ever compared me to Jeremy Corbyn before’
All of these measures were in the spirit of the “first step in our manifesto”, according to Ms Reeves, which was “to return stability to our economy”.
“That is the most important thing that I had to do as chancellor, and we do have a mandate to bring that stability back to the economy.”
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Asked if her increase in tax and spending was comparable to Jeremy Corbyn’s manifesto promises in 2017 and 2019, the chancellor said: “No one’s ever compared me to Jeremy Corbyn before. I stood down from his shadow cabinet because I disagreed with everything that he was doing.
“But if you’re faced with a situation where there’s a £22bn black hole in the public finances, you can either sweep that under the carpet or you can be open and transparent and honest with people about the situation you find yourself in.”
Sir Keir Starmer and Rachel Reeves have hinted at tax rises to come when the chancellor delivers the budget later this month.
In a Downing Street speech this morning, Ms Reeves will address “speculation” that an increase in income tax will be announced during the highly-anticipated statement on 26 November.
Sky News political editor Beth Rigbysaid it was “highly unusual” for the chancellor to make such a speech, but the Treasury believes she must “try to prepare the ground and make the argument for another big tax-raising budget”.
“I will make the choices necessary to deliver strong foundations for our economy – for this year, and years to come,” Ms Reeves will say.
Last night, Sir Keir gave Labour MPs a taste of what’s to come by warning of the need for “tough but fair” decisions.
Speaking at a party meeting in Westminster, he said the budget “takes place against a difficult economic backdrop”.
“It’s becoming clearer the long-term impact of Tory austerity, their botched Brexit deal and the pandemic on Britain’s productivity is worse than even we feared,” the prime minister said.
“Faced with that, we will make the tough but fair decisions to renew our country and build it for the long term.”
Starmer and Reeves know how hard this is going to be
I don’t need to tell you how difficult and contested this is going to be.
Only a year ago, the chancellor unveiled the biggest tax-raising budget since 1993 and said it was a “once in a parliament event”.
MPs will be fearing a massive backlash should manifesto promises on not raising income tax (and VAT and national insurance) for working people be broken.
Government figures know how hard it’s going to be but argue the chancellor has to level with the public about the hard choices ahead and what is driving her decision-making.
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9:49
Will Labour raise taxes?
The PM and chancellor’s warnings come after reports suggested the Office for Budget Responsibility is expected to downgrade its productivity growth forecast for the UK by about 0.3 percentage points.
That would leave Ms Reeves with a larger than expected fiscal black hole to fill, possibly up to £30bn.
The thinktank, which used to be headed by Torsten Bell, a Labour MP who is now a key aide to Ms Reeves and a pensions minister, said the move would raise vital cash while protecting working people.
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27:55
A promise-breaking budget?
Reeves to prioritise NHS and cost of living
Giving a further flavour of what to expect, Ms Reeves will this morning vow to make “important choices that will shape our economy for years to come”.
“It is important that people understand the circumstances we are facing, the principles guiding my choices – and why I believe they will be the right choices for the country,” she will add.
Ms Reeves will say her priorities are cutting national debt, easing the cost of living and protecting the NHS.
“It will be a budget led by this government’s values,” she’s set to say.
“Of fairness and opportunity and focused squarely on the priorities of the British people: protecting our NHS, reducing our national debt and improving the cost of living.”
A 32-year-old man has been charged with 10 counts of attempted murder after a mass stabbing on a high-speed train.
Anthony Williams, 32, from Peterborough, was arrested on Saturday evening following an attack on the Doncaster to London King’s Cross LNER service.
He has been charged with 10 counts of attempted murder, one count of actual bodily harm and one count of possession of a bladed article following a knife attack on a train in Cambridgeshire on Saturday, British Transport Police (BTP) said.
BTP said he has also been charged with another count of attempted murder and possession of a bladed article in connection with an incident on a London train in the early hours of 1 November.
Police said a victim suffered facial injuries after being attacked at 12.46am with a knife on a train at Pontoon Dock station on the Docklands Light Railway (DLR) in east London.
In a statement to Sky News, BTP said the suspect had left the location before police arrived and officers subsequently identified Williams as a suspect.
Williams will appear at Peterborough Magistrates on Monday morning, police said.
Armed police were deployed to Huntingdon, Cambridgeshire, where the train was stopped and made the arrest within eight minutes of the first 999 call.
Image: Forensic teams gathering evidence at Huntingdon train station on Sunday, after a mass train stabbing. Pic: PA
Footage of the arrest has emerged, showing a man on the ground surrounded by officers and a barking police dog, with the sound of a Taser being deployed.
Another man, 35, from London, who was also detained, was later released after officers established he was not involved.
On Monday, Transport Secretary Heidi Alexander told Sky News that one man, originally suffering life-threatening injuries, was now in a critical but stable condition in hospital.
She toldMornings with Ridge and Frost programme: “He went in to do his job, and he left work a hero. And there are people who are alive today because of his actions and his bravery.”
On Sunday, British Transport Police (BTP) confirmed he was a member of LNER rail staff who tried to stop the attacker.
“Having viewed the CCTV from the train, the actions of the member of rail staff were nothing short of heroic and undoubtedly saved people’s lives,” said BTP Deputy Chief Constable (DCC) Stuart Cundy.
The train driver, named as Andrew Johnson, has also been hailed as “courageous” for his actions during the stabbings.
Following the announcement about the charges on Monday, DCC Cundy warned against anyone interfering with their ongoing investigation.
“Our investigation is also looking at other possible linked offences. Following the charges authorised by the Crown Prosecution Service (CPS) I would stress the importance of not saying or publishing anything which might jeopardise or prejudice ongoing criminal proceedings, or the integrity of the investigation.”
Ms Alexander also told Sky News that BTP would be “increasing the visible patrols at stations” over the next few days.
“But generally, our trains are some of the most safest forms of public transport anywhere in the world,” she added.
Image: Armed police officers on patrol at St Pancras International station on Monday morning. Pic: PA
Tracy Easton, chief crown prosecutor for CPS Direct, said: “Our team of out-of-hours prosecutors worked to establish that there is sufficient evidence to bring the case to trial and it is in the public interest to pursue criminal proceedings.
“We worked closely with British Transport Police to review a huge volume of evidence including CCTV. The number of charges will be kept under review as this continues to progress.
“We know the devastating impact the events on Saturday’s train has had and how the incident shocked the entire country. Our thoughts remain with all those affected.”
A pregnant British teenager has been released from jail in Georgia after being held on drug smuggling charges.
Bella May Culley, 19, of Billingham, County Durham, was arrested in May at Tbilisi Airport and accused of attempting to smuggle 12kg of marijuana and 2kg of hashish into the country.
She was found guilty by a Georgian court on Monday and sentenced to five months and 25 days in prison, the total time she had already spent in custody. Her family also paid a 500,000 lari (about £138,000) as part of a plea deal aimed at reducing her sentence.
Culley and her mother, Lyanne Kennedy, both cried as the verdict was read.
Wearing a cream blazer, the teenager looked overwhelmed as she was released from custody on Monday.
Asked how she felt, she said she was “happy” and told reporters she did not expect to be freed.
Image: Bella Culley at an earlier court hearing in May. Pic: RUSTAVI 2/AP
Culley’s mother held her daughter’s hand as she was released.
Georgian prosecutors were considering a two-year sentence, but “decided to consider the time she has already served,” case prosecutor Vakhtang Tsalughelashvili told The Associated Press.
Culley’s lawyer, Malkhaz Salakhaia, said she would be given her passport and would be free to leave the country on Monday.
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Police footage released in May showed Culley in handcuffs as she made an initial court appearance. Pic: AP
The teenager pleaded not guilty to the charges after her arrest, saying she was tortured in Thailand and forced to carry the drugs.
Culley initially pleaded not guilty at a hearing in July to possession and trafficking illegal drugs.
She initially faced a maximum penalty of up to 15 years or life imprisonment, but was in talks with prosecutors about a potential plea bargain.
Image: Bella Culley walks with her mother, Lyanne Kennedy, following her release. Pic: Reuters
In Georgia, a nation of 3.7 million in the South Caucasus, the law allows for financial plea agreements that can be reached to reduce or eliminate a prison sentence in certain cases.
Such plea agreements are often obtained in drug-related cases.
Culley was reported missing in Thailand before her arrest at Tbilisi Airport on May 10.