The British Labour government denounces a massive “hole” in public finances left by the previous executive

The British Chancellor of the Exchequer (responsible for finance and the treasury) declared on Monday 29 July that the previous government had left a “hole” in the British public finances, thus preparing the ground for probable tax rises. “We inherited a £22 billion overspend”or around 26 billion euros, Rachel Reeves said in a speech to Parliament. This deficit was “mask” by the Conservative Party after 14 years in power in the United Kingdom, the Labour minister said.

Rachel Reeves said that without action to address this, “hole” in public finances could generate a jump in “25% of the budget deficit this year”The minister will therefore launch “the urgent and necessary work to reduce the pressure on public finances by £5.5 billion this year, and more than £8 billion next year”. His first budget letter, which will include “difficult decisions”will be unveiled on October 30.

Rachel Reeves has however promised that the government, in line with the Labour Party’s programme, will not increase social security contributions and taxes. “working people”Labour has rejected any idea of ​​austerity and the government should follow independent recommendations to give millions of civil servants above-inflation pay rises.