Sunak called general election early as his economic plan isnât working, says Reeves â UK politics live | Politics
Reeves says Sunak's decision to call early election shows he knows his economic plan not working
Reeves says Rishi Sunak claims that the eonomic problems facing the UK were caused by global economic shocks â Covid, and the energy price spike caused by the war in Ukraine.
But, she says, that is not correct, because the UK has been hit worse than comparable economies because of decisions taken by the Tories.
She says taxes have reached a 70-year high, national debt has more than doubled, and mortgages have gone up as a result of Liz Trussâs mini-budget.
If the UK economy had grown at the rate of the OECD average over the past 14 years, it would be £150bn larger, she says.
Rishi Sunakâs plan is not working, she says. And she says the clearest sign of that is his decision to call an early election.
Rachel Reeves speaking at the Rolls-Royce factory in Derby. Photograph: Stefan Rousseau/PA
Key events
Q: What tax would you like to cut if you could afford it?
Reeves says she would like working people to pay less income tax and national insurance.
But she wonât promise something she cannot afford. She wonât pay fast and loose with the national finances.
Q: What do you say to people who claim putting VAT on private school fees will put pressure on the state sector?
Reeves says the IFS says this policy will raise £1.4bn. That will go to state schools.
She says she was one of the children taught in portacabins, growing up under the last Tory government. And there were not enough books to go around.
She is not prepared to accept conditions like that now.
Reeves says she calls herself social democrat rather than socialist
Q: Are you a socialist?
Reeves says she describes herself as a social democrat.
What I mean by that is that I believe that children, from whatever background they come from, should get an equal start in life for the opportunities that our country offers.
I believe in strong public services to support people all through their lives from the cradle to the grave.
And I believe that work should always pay and offer security to people.
Reeves says Labour is pro-business and pro-working people
Q: If you are the pro-business party, who is the pro-labour party?
Reeves says Labour is both.
You canât be pro working people unless youâre pro the businesses that drive the jobs and the prosperity to ensure that good jobs are available all across our country.
And you canât be pro business unless youâre pro skilling up and supporting working people to fulfil their potential.
Theyâre two sides of the same coin.
Q: Why has the business endorsement letter not got FTSE 100 leaders on it?
Reeves says she is really proud of the names on the letter.
Reeves says 'crucial difference' between Tories and Labour is Tories offer unfunded tax cuts, but Labour won't
Q: Does this mean pensioners would pay tax under Labour?
Reeves says she wants taxes to be lower.
But she wonât make unfunded tax cuts, she says.
When Liz Truss made unfunded tax cuts, mortgage rates and interest rates went though the roof, she says.
She says the âcrucial differenceâ between Labour and the Tories is that Labour wonât offer unfunded tax cuts.
Reeves is now taking question.
Q: [From Faisal Islam, the BBCâs economics editor] You wonât match the Tory triple lock plus policy. So, under you, pensioners could pay tax. Is that because you donât think the Tory policy is a good idea, or is it because you donât have the money? And will you have a budget before the summer?
Reeves says Labour is committed to the triple lock.
But, she says, the Tories have already promised unfunded tax cuts worth £64bn. And this one is an extra one, on top of that.
She says the money they are saying they would use to fund this they already earmarked for the national service plan.
Reeves says her watchwords will be stability, investment and reform. People will hear those words from her a lot, she says.
She sets out Labour plans, highlighting in particular the six first step proposals.
Labour will unlock potential, turn the page on chaos and decline, and start a new chapter for Britain, she says.
Reeves says every policy in the Labour manifesto will be fully costed and fully funded. She goes on:
No ifs, no ands, no buts. That is the attitude that I will take into the Treasury because taxpayersâ money should be spent with the same [discipline] which people spend their own money.
She says she recalls her mother sitting at the kitchen table going through bank statements and receipts when she was growing up. They were not badly off, but they did not have money spare, and every penny matters. She says that is the attitude she would take into the Treasury.
Reeves says she would lead 'most pro-growth, pro-business Treasury' UK has ever seen
Reeves says she worked in the private sector and in financial services before she became an MP. She goes on:
I want to lead the most pro-growth, the most pro- business Treasury that our country has ever seen, with a laser focus on delivering for working people.
Reeves says Sunak's decision to call early election shows he knows his economic plan not working
Reeves says Rishi Sunak claims that the eonomic problems facing the UK were caused by global economic shocks â Covid, and the energy price spike caused by the war in Ukraine.
But, she says, that is not correct, because the UK has been hit worse than comparable economies because of decisions taken by the Tories.
She says taxes have reached a 70-year high, national debt has more than doubled, and mortgages have gone up as a result of Liz Trussâs mini-budget.
If the UK economy had grown at the rate of the OECD average over the past 14 years, it would be £150bn larger, she says.
Rishi Sunakâs plan is not working, she says. And she says the clearest sign of that is his decision to call an early election.
Rachel Reeves speaking at the Rolls-Royce factory in Derby. Photograph: Stefan Rousseau/PA
