Conservative leader Kemi Badenoch has called for Rachel Reeves to resign, claiming the Chancellor snuck in tax rises to her Autumn Budget “to pay for welfare”.
In an interview with BBC’s Laura Kuenssberg, Badenoch said: “The Chancellor called an emergency press conference telling everyone about how terrible the state of the finances were and now we have seen that the OBR had told her the complete opposite.”
Following Wednesday’s Budget, the Office of Budget Responsibility chair, Richard Hughes, said as of 31 October, the Chancellor had maintained a fiscal buffer of £4.2bn, despite the productivity downgrade forecast.
Reeves has since disputed claims she misled the public, saying she was “very upfront” about asking people to contribute more to fund public services.
But, Badenoch disagreed with this stance, believing the Chancellor was instead raising taxes to pay for welfare.
She said: ““The only thing that was unfunded was the welfare payments which she has made and she’s doing it on the backs of a lot of people out there who are working very hard and getting poorer.
“And because of that, I believe she should resign.”
Writing to the FCA and abolishing the cap
Badenoch also confirmed shadow chancellor Mel Stride has written to the Financial Conduct Authority over Reeves’ decision not to disclose the fiscal headroom, with hopes an investigation will be conducted.
She said: “It looks like what she was doing was trying to pitch-roll her budget, tell everyone how awful it would be and then they wouldn’t be as upset when she finally announced it.”
The opposition leader added that is now how the government should be “running” the Budget process and that the public should have “confidence in our system”.
Badenoch also said she would reverse the scrapping of the two child benefit cap, arguing the decision saddled the next generation with debt.
She told Sky New’s Trevor Phillips: “This is not about the value of children.
“This is about government making sure that we live within our means, the Government’s job is to draw a line where it is responsible.
“Only the Conservatives are saying this is getting out of hand.”
Holding the government to account
Badenoch has also defended her response to the Budget, which Reeves noted made her feel “uncomfortable” after the Conservative leader mocked and impersonated the Chancellor.
Reeves said: “I don’t like that sort of stuff, I don’t do it.
“I would have preferred to hear Kemi Badenoch set out her alternative economic proposals. We haven’t heard that.”
However, Badenoch denied going to far in her response, arguing it is her responsibility “to hold the government to account”.
She said: “The people out there wanted someone to tell her she was doing a bad job, and I had to make sure that I got that message across.
“I don’t care whether people misbehave at the despatch box. What I care about is whether or not I’m doing a good job.
“She should care about whether or not she’s doing a good job, she’s doing a terrible job.”