Britain’s former Conservative government has left a £22 billion hole in public finances — approximately €26 billion — according to UK Finance Minister Rachel Reeves (Labour).
“We have inherited a projected overspend of £22 billion ($28 billion)” this year, Reeves told the British Parliament on Monday
She charged that the unfunded expenditure had been purposely “covered up” by the Tories, sent back to the opposition benches after Labour’s 4 July landslide ended their 14-year reign in the UK.
Reeves outlined a plan to recover £5.5 billion from the deficit this year, and an additional £8 billion by 2025. Emphasizing the need for this plan, she said it would lessen the financial strain on the government.
In a bid to trim the deficit, Reeves is discontinuing a fuel allowance for pensioners — a decision she described as tough.
On Monday, she also revealed plans to abolish a fund aimed at revamping Britain’s railways.
Furthermore, she scrapped her predecessor Rishi Sunak’s controversial proposal to send migrants to Rwanda.
Reeves expects her complete budget proposal to be ready by 30October.
