UK Chancellor Unveils £20 Billion Deficit Plan

Chancellor Rachel Reeves is set to unveil plans addressing a £20 billion shortfall in public finances inherited from the previous Conservative government. In her forthcoming speech, she will announce the creation of an 'Office of Value for Money' to cut wasteful spending and will pause major infrastructure projects, including the construction of new hospitals and a road tunnel bypassing Stonehenge. Despite Labour's manifesto pledging not to raise taxes on working people, Reeves is considering new taxes, particularly on capital gains and potential reforms to pension tax relief, as ways to bridge the financial gap. She is also expected to approve above-inflation pay rises for millions of public sector workers, which could add approximately £3.5 billion in costs. The Conservative Party has criticized Reeves' claims about the financial state, asserting that they have been transparent and made difficult decisions to manage the economy. Reeves emphasizes the need for reform to repair what she describes as a 'toxic inheritance' from the Tories, setting the stage for potential tax hikes in the upcoming Autumn Budget.