Reeves calls on Truss and Hunt to apologise for impact of mini-Budget

Rachel Reeves has called on Liz Truss and Jeremy Hunt to apologise for the impact of the mini-Budget on household finances, stressing that the fiscal statement has caused “lasting damage” that government U-turns will not rectify.

The new Chancellor announced in an emergency statement this morning that the government will reverse “almost all the tax measures” unveiled in the mini-Budget last month.

Hunt revealed that plans to reduce the basic rate of income tax would be scrapped, along with proposed cuts to dividend rates and planned IR35 tax changes, VAT-free shopping for tourists and alcohol duty changes.

Addressing the Commons this afternoon, Hunt said: “This government will take the difficult decisions necessary to ensure there is trust and confidence in our national finances. That means decisions of eye-watering difficulty.

“Every single one of those decisions, whether reductions in spending or increases in tax, will be shaped through core, compassionate, conservative values that will prioritise the needs of the most vulnerable,” Hunt added.

Confirming the U-turns announced this morning, the Chancellor told MPs: “Where the interests of economic stability means the government needs to change course, we will do so, and that is what I have come to the House to announce today.”

Responding for Labour, Reeves said: “Does the Chancellor accept that once credibility and trust have been destroyed, it cannot be simply regained by a series of zig-zagging, chaotic U-turns?

“Will he and the Prime Minister apologise for the costs and anxieties laid on families? Can he admit once and for all that the market turmoil we are in was directly caused by the disastrous decisions of his predecessor and of the Prime Minister?”

Kwasi Kwarteng was sacked as Chancellor on Friday amid the ongoing economic turmoil that has followed the mini-Budget. The former Chancellor faced criticism for not providing an OBR analysis of the government’s plans alongside his statement.

Following the announcement of the mini-Budget, the pound crashed to its lowest level to date against the dollar, and government borrowing costs soared. Mortgage rates reached their highest level since the 2008 financial crisis in early October.

The Shadow Chancellor emphasised that “lasting damage” has been caused by the mini-Budget, declaring: “They’ve set fire to everything. Now they insist it is all fine. The truth is, Mr Speaker, an arsonist is still an arsonist, even if he runs back into a burning building with a bucket of water.”

Hunt told the Commons that there will be “many difficult decisions” to be announced in the government’s medium-term fiscal plan, which he is set to deliver to parliament on October 31st. During his statement this morning, the Chancellor announced that “some areas of spending will need to be cut”.

Reeves said: “No one was talking about spending cuts until the Tories crashed the economy with their mini-Budget. So I ask the Chancellor, why should the British people pay the economic price for the Tories’ mistakes?”

She accused the Conservatives of putting a “lasting premium” on people’s mortgages, demanding: “How does the Chancellor think ordinary people can possibly afford any more of this Conservative government?”

The Labour frontbencher argued that the Tories have “run out of credibility” and are now “running out of Chancellors”. She noted that Hunt had been in cabinet for nine of the last 12 years, adding: “He was a big part of austerity season 1 and now he says the cure is austerity season 2.”

Labour tabled an urgent question today following Hunt’s announcement, calling on the Prime Minister to make a statement and take questions from MPs. The Prime Minister did not attend session, however, with Penny Mordaunt sent in her place.

Keir Starmer accused the Prime Minister of “hiding away” and being “scared of her own shadow”. The Labour leader said: “How can Britain get the stability it needs when all the government offers is grotesque chaos?

“How can Britain get the stability it needs when instead of leadership we have this utter vacuum? How can Britain get the stability it needs when the Prime Minister has no mandate from her party and no mandate from the country?”