Rachel Reeves faced a bruising grilling from MPs today after hiding in China while borrowing costs soared to 25-year highs slashing her fiscal “headroom” to a feeble £1 billion. SNP MP Stephen Flynn asked her the point blank question of whether she would rule out future spending cuts. Reeves refused:
“I’m not gonna write five years’ worth of budget in the first six months of a Labour government.”
Alarm bells will be ringing among ministers who are already fuming as Labour’s manifesto pledges evaporate. Reeves instead promised she wouldn’t break her ‘fiscal rules’. Notably no commitment to rule out further tax hikes either…
Paula Barker, Liverpool Wavertree MP backing Andy Burnham, told Times Radio there wouldn’t be trouble from the markets under Burnham:
“The markets will have to fall in line.”