GOVERNMENT is not about easy choices. It is about taking the difficult decisions now that are in the best interests of the British people.
This new Labour Government was elected on a promise of change — and that means being honest with Sun readers about the scale of the challenge we face.
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It is what you expect from us and it is what you will get from me as your Chancellor.
When I walked into the Treasury three weeks ago I knew the inheritance left by the previous Conservative Government would be bad.
Taxes at a 70-year high, debt through the roof and an economy only just coming out of recession.
It is the worst set of circumstances since the Second World War.
However, within hours of coming to power it became clear to me that things were far worse than the Conservatives were willing to admit.
More than £6billion spent on the Tories’ failed asylum system.
Another £1.6billion handed over to private rail companies to pay for passenger shortfalls.
And hundreds of millions of pounds spent on unfunded promises made by Conservative minsters.
In fact, the findings from an internal investigation I commissioned three weeks ago reveal a £22billion black hole in the public finances.
That’s not a black hole next year or in the year after. It is a £22billion black hole in this year’s budget alone.
I know Sun readers are responsible with their hard-earned cash, you live within your means, you keep yourself out of debt and you keep money aside for yourselves and your family for a rainy day.
So why couldn’t the previous Government do the same with the country’s finances?
Because they do not care.
They put party before country every single time.
And they spent taxpayers’ money like there was no tomorrow because they knew someone else would have to pick up the bill.
They covered it up from the Labour Party, covered it up from Parliament and covered it up from you — the British people.
This new Labour Government was elected on a promise of change — and that means being honest with Sun readers about the scale of the challenge we face
Rachel Reeves
Where they were covering up, I will be honest.
The black hole in the public finances is not sustainable.
Left unchecked it would put financial stability at risk.
It would see debt rising and it would mean higher costs in the future.
We saw what happened with the mini budget when governments play fast and loose with the public finances.
I am not prepared to let that happen.
We saw what happened with the mini budget when governments play fast and loose with the public finances
Rachel Reeves
That is why I have announced immediate action to bring spending under control, with £5.5billion of savings this year and £8billion next year to begin to fix the foundations of our economy.
I will never make promises without saying where the money is going to come from. If we cannot afford it, we cannot do it.
That means taking the difficult decision to target the Winter Fuel Payment for the least well-off pensioners from now on.
It means cancelling road projects that were promised by the previous Government without the money to pay for them.
It means reviewing the New Hospitals Programme to ensure we are not offering patients false hope, but an honest and realistic plan to rebuild our NHS.
These are not the choices I wanted to take, but they are the right choices I must take to restore economic stability.
The right choice is also keeping taxes low for working people, which is why we will not raise national insurance contributions, income tax or VAT
Rachel Reeves
The right choice is also keeping taxes low for working people, which is why we will not raise national insurance contributions, income tax or VAT.
And it is about turning the page on years of industrial action which caused misery for the public, damaged our economy and cost taxpayers tens of millions of pounds.
That is why I have agreed to accept the recommendations of the independent pay review body and give our teachers, police officers and NHS staff the pay rise they deserve.
And I’m pleased the Health Secretary, Wes Streeting, has agreed an offer to the junior doctors that is being recommended by the British Medical Association to its members.
It will take time to repair the damage that was done
Rachel Reeves
These decisions are not easy and many of the decisions I have had to take are not the ones I wanted to take or expected to take before the General Election.
But after 14 years of chaos and irresponsibility under the Conservatives, Sun readers deserve a Government that will do what is right, even if it is not easy.
And there will be more difficult choices ahead on spending, welfare and tax.
It will take time to repair the damage that was done.
But in the few weeks we have already been in power we have started the work necessary to fix the foundations of our economy, so we can rebuild Britain and make Sun readers better off.