The Chancellor announced a series of spending cuts as she blames the Tories for leaving a £22bn black hole in the public finances
Pensioners benefits will be cut, transport projects will be cancelled and plans for new hospitals are at risk, Rachel Reeves has revealed.
The Conservatives' Shadow Chancellor Jeremy Hunt has accused the new Labour government of 'caving in' to trade unions, claiming that the pay rises account for half of the 'black hole' revealed by Ms Reeves. But the new Chancellor accused the last government of making unfunded promises which they did not budget for, telling MPs in the House of Commons today , "I will never do that.
Winter Fuel Payment and Pension Credits Ms Reeves said she was taking the 'difficult decision' that those not in receipt of pension credit, or other means-tested benefits, would no longer receive the winter fuel payment from this year onwards. Those on pensions credit will still get payments, she explained.
The Chancellor also said that the government will maximise the take-up of pension credits. This includes by working with older people's charities and local authorities to raise awareness of pension credit and help identify households who are not claiming it. The Chancellor did not name any hospitals or projects in her speech on what the Labour government has inherited from the Tories. The new health secretary, Wes Streeting, told the Manchester Evening News in June, before the general election, that Labour is committed to the project, but said 'full and frank' conversations were needed to make sure the completion target date of 2030 is met.
Civil servants will also get a pay boost of up to 5 per cent. Government departments will have to find savings of at least £3bn to help fund the pay rises, which will cost £9bn this year with all non-essential spending on consultancy and communication to be stopped.
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