UPDATE: Sir Keir Starmer is set to confront MPs in the House of Commons today, as urgent questions arise over the potential fallout from the Government’s latest Budget. This comes after a stark warning from the Organisation of Economic Co-operation and Development (OECD), which predicts negative impacts on the UK economy due to tax increases over the next two years.
The showdown takes place during Prime Minister’s Questions (PMQs) at 12 PM BST, where the Leader of the Opposition will challenge Conservative leader Kemi Badenoch on the implications of Chancellor Rachel Reeves’ recent fiscal decisions. The OECD’s report highlights that the UK’s inflation rate is set to be the highest among the G7 advanced economies this year, forecasting a slowdown in economic growth.
The Chancellor’s Budget announcement has faced intense scrutiny, particularly following accusations that she misled voters regarding the state of public finances. The Office for Budget Responsibility (OBR) released a statement suggesting that Reeves’ messaging prior to the Budget was “not inconsistent” with their analysis, despite raising questions about the necessity of the proposed tax hikes.
In a developing narrative, former Labour Prime Minister Gordon Brown has publicly criticized those opposing Reeves’ plan to lift the two-child benefit cap, arguing it is a vital measure to combat child poverty. Writing for the Daily Mirror, he emphasized the need to combat what he described as “this week’s Tory lie” against the change.
In the wake of these events, the OBR and the Treasury appear to be at odds, especially after the resignation of OBR Chairman Richard Hughes, who stepped down following a data leak prior to Reeves’ Budget presentation. This fracture raises further questions about the Government’s fiscal strategy and the credibility of its economic forecasts.
As Sir Keir Starmer prepares for a potentially contentious session in Parliament, the stakes are high. The outcome of this PMQs could shape public perception of the Government’s economic management and influence upcoming policies.
Stay tuned for live updates as this urgent story continues to unfold. What will be the implications of today’s discussions on the future of the UK economy?
