The new Labour finance minister is set to announce on Monday the size of the deficit left by the Conservatives in the UK and her strategy to “restore stability”.
British media reported a deficit of nearly £20 billion (€23.7 billion), which the new Labour government led by Keir Starmer believes is due to the Conservative administration, which suffered a resounding defeat in the July 4 elections after 14 years in power.
The government said in a statement that Finance Minister Rachel Reeves will present to the House of Commons the results of the Treasury’s assessment of the inheritance it received and outline “the early stages of restoring stability to the public finances” over the weekend.
“The new government’s audit shows the UK is broke,” the prime minister’s office said.
According to excerpts of her speech, Reeves, the first woman to hold the portfolio, will accuse the Conservatives of “hiding the true state of public finances.”
The previous government “spent money as if there was no future, knowing that someone else would foot the bill,” Reeves told The Sunday Times on Sunday.
To rebalance the public accounts, it may be necessary to cancel or postpone rail and road infrastructure projects.
But Labour rejects the idea of raising income tax, VAT, social contributions and corporation tax, which would open the door to increasing capital gains or inheritance tax.
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