Commons erupts in laughter at Rachel Reeves after shocking economy claim | Politics | News

Rachel Reeves drew laughter from opposition MPs in the House of Commons when she boasted that Labor had brought “stability to our public finances”. The Chancellor began his statement by defending tax increases in his first Budget last year.

But he caused laughter from Conservative MPs when he said the Government had brought “stability to our public finances”. Ms Reeves said: “We are rebuilding our economy. “Over the last 16 months, we have overhauled our planning system to ensure Britain builds back.

“We have struck new trade deals with the US, India and the EU. We have reformed our visa system to bring the brightest and best to Britain.

“We have changed the fiscal rules we inherited from the Conservatives and increased public investment to the highest level in four decades.

“And in last year’s budget I increased taxes on businesses and the richest to plug the £22bn black hole left in the public finances by the opposing party.

“And we used that money to fund the biggest ever deal for our NHS. These were fair and necessary elections. And we faced opposition to them.”

He added: “We held these elections for a reason because after 14 years of Conservative government, working people demanded and deserved change.

“Investment does not cut our public services. Stability for our public finances is the most important factor in lowering the cost of living. And economic growth is the best way to improve wages, create jobs and support public services.

“This is our plan, this is the aim of this Government and our Prime Minister.”

But Conservative MP Matt Vickers insisted Ms Reeves “had no idea”.

He said: “Rachel Reeves says she brought ‘stability’ to our economy. What planet does she live on?”

“Unemployment is up. Taxes are at record levels. Inflation has nearly doubled. Growth is going in the wrong direction. He has no idea.”