Chancellor Reeves to Reveal £20 Billion Deficit

Chancellor Rachel Reeves is set to reveal a significant £20 billion deficit in the public finances, attributing the shortfall to the previous Conservative government's spending. This revelation is expected to lay the groundwork for potential tax increases and spending cuts in the upcoming autumn budget. Reeves will argue that the Conservatives' fiscal mismanagement necessitates tough decisions to stabilize the economy, including possible hikes in capital gains and inheritance taxes. Former Chancellor Jeremy Hunt and other Conservative figures have criticized Labour's claims as fabrications intended to justify tax increases. Additionally, Deputy Prime Minister Angela Rayner will announce an overhaul of planning rules to facilitate the construction of 1.5 million homes. The Labour government aims to address various public service funding issues, including public sector wages and infrastructure, to rebuild the economy.