The first budget under the new government will take place on 30 October, Rachel Reeves has announced.
The chancellor confirmed the date of the budget – Labour’s first since taking office after the election on 4 July – during a lengthy statement in the Commons in which she accused the previous Conservative government of lying about the amount of public money they had planned to spend.
Ms Reeves made her statement off the back of a Treasury review into the government finances, which she said had uncovered a £22bn black hole.
The Conservatives have interpreted Ms Reeves’ statement as laying the ground for potential tax hikes at the next budget, despite Labour ruling out increasing major taxes during the election campaign.
Former chancellor Jeremy Hunt accused Ms Reeves of scapegoating the Conservative government and using them as an excuse to raise taxes and cancel projects.
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The budget, which reveals the government’s plans for the economy, will be held alongside “the full economic and fiscal forecasts from the Office for Budget Responsibility”, Ms Reeves said.
She said it would be “a budget to fix the foundations of our economy”.
“It will be a budget built on the principles that this new government was elected on,” she added.
The chancellor promised to “treat taxpayers’ money with respect by ensuring that every pound is well spent”.
Ms Reeves added that she will ensure all public spending “represents value for money”.
And she promised to not raise taxes “on working people”.
“That means we will not increase national insurance, the basic, higher or additional rates of income tax or VAT,” she said, repeating what Labour said during the election campaign.
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The chancellor said her first budget will be guided by three principles: Meeting Labour’s “fiscal rules”, moving the current budget “into balance” and getting debt “falling as a share of our economy by the end of the forecast”.
Laying the groundwork for unpopular announcements, she said: “Let me be honest, challenging trade-offs will still remain.”
Ms Reeves said she is launching a multi-year spending review that will set departmental budgets for at least three years, and will include budgets for this year and next year alongside the 30 October budget.
