Auto Amazon Links: No products found. Blocked by captcha.
First Minister John Swinney has publicly demanded the resignation of Chancellor Rachel Reeves, accusing her of misleading both the public and financial markets regarding the state of the UK’s economy. Speaking to BBC Scotland News, the SNP leader asserted that Reeves must “face the consequences” of her actions, stating she had “no alternative” but to step down. However, Reeves has firmly denied these accusations, insisting she did not mislead anyone before last week’s Budget announcement. Prime Minister Sir Keir Starmer also backed the chancellor, defending her against claims of misleading statements.
The controversy centers on Reeves’s pre-Budget speech on 4 November, during which she suggested tax increases might be necessary. She highlighted concerns about the UK’s productivity performance, describing it as “weaker than previously thought.” However, it later came to light that the Office for Budget Responsibility (OBR) had informed Reeves in mid-September that the public finances were in a better condition than generally believed, primarily due to a forecast of higher wages — information she did not disclose. This has led to criticism from the Conservatives, who accuse her of painting an overly bleak picture of the public finances to justify impending tax hikes.
John Swinney expressed deep concern over the situation, emphasizing to BBC Scotland News that “Rachel Reeves has quite clearly misled the public and the financial markets.” He pointed out that she had early access to OBR data indicating that the financial difficulties were not as severe as she portrayed. Swinney remarked, “If the public cannot rely on the chancellor being straight with them then I don’t know how we can function in our governance.” He also called for an investigation by the prime minister’s ethics adviser, adding, “If we cannot rely on the chancellor the exchequer telling the truth to the public then the United Kingdom government is in a dismal situation.”
The criticism did not stop there. Conservative leader Kemi Badenoch has echoed calls for Reeves’s resignation and demanded an inquiry, accusing the chancellor of deliberately providing false information to soften the impact of her Budget. Nigel Farage, leader of Reform UK, has taken the additional step of reporting Reeves to the independent adviser on ministerial ethics to determine if she violated the ministerial code. Meanwhile, the Scottish Conservatives have urged Scottish Labour leader Anas Sarwar to clarify his position on Reeves’s role. Tory finance spokesman Craig Hoy condemned Reeves’s actions as a “shameful” attempt to mislead the public and warned that unnecessary tax increases would unfairly burden households and businesses. Asked for comment, Scottish Labour has yet to respond. Reeves, speaking on the BBC’s Sunday with Laura Kuenssberg program, maintained that the OBR figures showed there was “less fiscal space than there was” and said she had been “upfront” about her decisions, rejecting the suggestion that she intentionally misled anyone
Read the full article from The BBC here: Read More
Auto Amazon Links: No products found. Blocked by captcha.