The Tory chaos cost the government £58 billion last year alone, says Rachel Reeves
The Conservatives’ “chaos and economic irresponsibility” cost the government £58 billion in tax revenue last year alone, Rachel Reeves revealed.
The new Chancellor of the Exchequer said 14 years of Conservative controversy, gaffes and scandals had prevented the British economy from growing at the same pace as other leading nations.
In her first major speech since taking office today, Reeves will promise to fix the “fundamentals” of the economy to stimulate its faster growth.
She will say: “Where governments have not been prepared to take the difficult decisions to create growth – or have waited too long to act – I will act. It is now a national mission. There is no time to lose.”
“This morning I want to set out the first steps this new government has taken to repair the foundations of our economy so that we can rebuild Britain and make every part of our country better off.”
During the election campaign, Reeves and Keir Starmer repeatedly stated that Labour’s plans could be financed by stimulating economic growth without raising taxes or cutting spending elsewhere.
But the Tories insisted that there was a £38 billion black hole in Labour’s budget bills, which would result in working households paying £2,000 more in taxes.
In his speech in central London this morning, the Chancellor will add: “We are facing the weight of fourteen years of chaos and economic irresponsibility.
“A new analysis from the Treasury, which I requested over the weekend, highlights the opportunities missed by this failure.
“If the UK economy had grown at the average rate of OECD countries since 2010, it would have grown by over £140 billion.
“This could have raised £58 billion in additional tax revenue last year alone to help maintain our public services.
“It is the task of the new government to lay the foundations.”
