The Chancellor Rachel Reeves has said on Thursday that she will have to make “difficult decisions” as she has said they must “fix the foundations” first.
Reeves is set to announce the date of the budget before the summer recess including a full assessment of “spending inheritance” left by Tories.
Reeves said in an interview with Bloomberg TV on Thursday, “I’m not going to announce any tax breaks or tax changes without saying where the money is going to come from, and we will have a budget later this year.
“But I also just need to be really clear and honest about the scale of the challenge that we’ve inherited with the public finances.
“We’re going to have to make difficult decisions. We need to fix the foundations before we can start rebuilding things in Britain.
“But unlike the previous government, I am going to be honest about the scale of the challenge. I’m going to level with people.”
The Chancellor insists that the government’s focus is growing the economy faster than the G7, and Labour’s plans to grown the British economy depends “on businesses and investors choosing Britain as a place to invest.”
Ministers will hold consultations with the Office for Budget Responsibility (OBR) on tax and spending changes with the budget watchdog.
Reeves was asked if investors will welcome Labour’s plans, the Chancellor said, “Absolutely…
“There’s no plans that I can draw up in my new office in the Treasury that are going to work unless we have business buy-in.”
