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Chancellor Rachel Reeves declared on Sunday that she was ‘determined’ to remain in her position for years
Alex Croft,Nicole Wootton-CaneMonday 01 December 2025 07:45 GMTComments
CloseDefiant Rachel Reeves says she will be Chancellor for years
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Sir Keir Starmer is set to use a speech on Monday to back last week’s Budget and and his embattled chancellor Rachel Reeves, amid a simmering row over whether she misled the public over the state of the public finances.
The prime minister is expected to say an overhaul of the welfare system is needed, months after he was forced to abandon cuts in the face of a major backbench rebellion.
“We have to confront the reality that our welfare state is trapping people, not just in poverty, but out of work,” Sir Keir will say, arguing reforms are aimed at tackling low productivity, not making him “look somehow politically ‘tough’”.
It will come as Ms Reeves is expected to face an urgent question in the Commons tomorrow, with MPs set to grill her over accusations that she talked up the scale of the government’s fiscal challenge before announcing tax rises in the Budget - despite in fact having a £4bn surplus.
The chancellor hit back against accusations that she had lied, saying “Of course I didn't” in an appearance on Sky News on Sunday morning, before later declaring that she was “determined” to remain in her position for years to come.
Key Points
- Defiant Starmer to defend Budget after Reeves forced to deny lying about black hole to justify tax hikes
- Reeves declares she will remain as chancellor
- Watch: Rachel Reeves denies lying about Budget black hole to justify tax hikes
- Monday morning headlines: PM set to back Reeves in speech
Minister insists he did not feel 'misled' by Reeves
Political correspondent Millie Cooke reports...
Cabinet minister Darren Jones insists he did not feel misled by Rachel Reeves amid growing allegations she misled the public over the size of the fiscal black hole she faced ahead of the Budget.
Asked whether he felt misled, he told Sky News: "Not in the slightest, because the OBR does about five cycles in the run up to a budget, the number moves around. You don't actually know the final number until the very end of the process.
"And all that process does is talks about how much money they think you might have coming in that you've not already allocated. That's before you get to headroom. That's the amount you put aside for a rainy day. The chancellor was very clear we needed more than we've had in the past."
Pressed on whether the chancellor misled Cabinet after it was reported she convinced ministers the public finances were in a dire state when she knew forecasts had improved, Mr Jones said: "We don't disclose minutes of cabinet meetings. But look, the chancellor didn't say anything at the time. The budget was the budget, which was delivered on the 26th of November. But as I say, she had to raise more money because, first of all, we needed the headroom."
Chancellor of the Duchy of Lancaster Darren Jones in Downing Street, London (James Manning/PA) (PA Wire)Nicole Wootton-Cane1 December 2025 07:45Morning summary: PM set to back Reeves in speech
Good morning and welcome to The Independent’s politics blog. Here are today’s main politics headlines:
• Sir Keir Starmer is set to back Rachel Reeves and her Budget in a speech in London this morning. It comes after Ms Reeves was accused of misleading the public by lying about economic forecasts she had received in order to justify her £26bn worth of tax hikes.
• Your Party has announced its new name after months of confusion and indecision. After a ballot at the party’s inaugural conference, Jeremy Corbyn confirmed it will continue to be called Your Party.
• A Bangladesh court has sentenced Labour MP Tulip Siddiq to two years in prison after finding her guilty of corruption over a government land project. The MP for Hampstead and Highgate, who denied the allegations, is unlikely to serve the sentence as the UK does not have an extradition treaty with Bangladesh.
Nicole Wootton-Cane1 December 2025 07:35Watch: Rachel Reeves denies lying about Budget black hole to justify tax hikes
Rachel Reeves denies lying about Budget black hole to justify tax hikesAlex Croft30 November 2025 22:40Reeves declares she will remain as chancellor
Sir Keir Starmer’s speech will look to move on from a simmering row over whether chancellor Rachel Reeves lied about the scale of the government’s fiscal challenge.
During the morning media round on Sunday, Ms Reeves denied lying about the size of the Budget black hole to justify her £26bn tax hikes.
Pressed by Trevor Phillips on Sky News about whether she lied to the public by not making it clear she had a £4bn surplus instead of a deficit, she hit back, saying: “Of course I didn't”.
The Office for Budget Responsibility (OBR) on Friday said it had informed the chancellor as early as September 17 that the deficit had improved, and told her in October it had been eliminated altogether, but Ms Reeves suggested tax rises were still necessary in November to tackle a £20bn gap.
The chancellor denied breaking from the manifesto while speaking to Laura Kuenssberg: “We didn't break the manifesto.
“But am I asking working people to pay a bit more? Yes, I am.”
She also affirmed that she felt she would be chancellor for years to come.
Alex Croft30 November 2025 22:39Defiant Starmer to defend Budget after Reeves forced to deny lying about black hole to justify tax hikes
Sir Keir Starmer will issue a defiant defence of the Budget after Rachel Reeves was forced to deny having lied about the state of the country’s finances in an effort to justify her £26bn worth of tax hikes.
In what will be seen as an attempt to prop up his embattled chancellor, the prime minister will on Monday argue that Ms Reeves has provided economic stability by raising billions of pounds more in so-called fiscal “headroom” to protect against future market shocks.
He will also defend her decision to spend billions more on benefits, rejecting the notion of trying to look “tough” on welfare for the sake of politics – although he will also pledge to reform the system and get more young people who are currently signed off sick into work.
Our Whitehall editor Kate Devlin writes:
PM to defend Budget after Reeves forced to deny lying to public to justify tax hikes
Calls for multiple investigations following accusations that the chancellor misled the publicAlex Croft30 November 2025 22:37More about
Rachel ReevesKeir StarmerPrime MinisterBudgetwelfare stateUKJoin our commenting forum
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