(qlmbusinessnews.com . Mon 1st Dec, 2025) London, UK —
Chancellor Reeves Faces Calls to Resign Amid Allegations of Economy Misrepresentation
Chancellor Rachel Reeves Faces Allegations of Misleading Public Ahead of Budget Reveal
Chancellor Rachel Reeves has come under fire for reportedly misleading the public about the state of Britain's economy in the lead-up to the unveiling of her budget. Despite earlier warnings about a potential downgrade in the UK's economic productivity forecasts, it has been revealed that the Office for Budget Responsibility (OBR) had in fact informed her of a more optimistic outlook as early as mid-September, indicating an improvement in public finances and higher wage forecasts, which Reeves omitted to mention.
Facing questioning on the Reporters's Sunday programme with Laura Kuenssberg, Reeves defended her approach, arguing that the OBR's data indeed showed a reduction in fiscal leeway but insisted she had been candid about her budgetary decisions. This comes amid calls from Conservative leader Kemi Badenoch for the chancellor to resign over these allegations.
Badenoch criticised Reeves for portraying an overly bleak picture of public finances, suggesting it was a strategic move to justify tax increases. Downing Street has denied these accusations, and Prime Minister Sir Keir Starmer is set to affirm his support for Reeves' budget choices in an upcoming speech, highlighting their role in easing cost of living pressures and reducing inflation.
In her defence, Reeves stated that the adjustment from a £9.9bn fiscal headroom in spring to £4.2bn in autumn constrained her ability to present a budget without imposing new financial measures. She attributed the decision to enhance fiscal headroom to £21.7bn to a desire for resilience, including policy changes such as scrapping the two-child benefit limit, offset by increases in online gambling taxes and intensified efforts against tax avoidance.
Despite this, Badenoch remains unconvinced, suggesting that welfare spending should have been reduced instead, and accused Reeves of engaging in what could amount to market manipulation by setting negative expectations ahead of a less dire budget announcement. This sentiment is echoed by Tory shadow chancellor Mel Stride, who has sought an investigation by the Financial Conduct Authority into potential market abuse, and by other political figures including Nigel Farage and Liberal Democrat deputy leader Daisy Cooper, who have called for further scrutiny into Reeves' pre-budget actions.
With the credibility of the Chancellor's pre-budget communications in question, Reeves faces the challenging task of reassuring both parliament and the public of her financial stewardship.
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