Starmer Defends Reeves on Budget Finance Claims

Prime Minister Keir Starmer defended Chancellor Rachel Reeves on Monday against opposition accusations that she misled the public and markets about the state of public finances ahead of last week's budget, as the government outlined plans to address economic challenges and reform welfare.

In speeches at a London nursery and community center, Starmer rejected claims of deception, attributing the need for tax increases to a productivity downgrade by the independent Office for Budget Responsibility. "There was no misleading," Starmer said. "I was clear we needed more headroom." He emphasized that the government had inherited strained finances after 14 years of Conservative rule and was now taking steps to stabilize the economy, invest in public services and reduce borrowing.

Reeves's budget, delivered last week, included £26 billion in tax hikes, primarily through extending freezes on income tax and national insurance thresholds, which officials said would affect around 1.8 million people by 2031. The measures aimed to fund increased welfare spending, including lifting the two-child benefit cap to help 450,000 children escape poverty, and build a larger fiscal buffer against future...