
The BBC’s Laura Kuenssberg asked Rachel Reeves if she is “really a Labour chancellor” after her latest set of spending cuts.
The senior cabinet minister – who is in charge of the country’s finances – has been squeezing Whitehall departments ever since she was elected last July.
In her bid to stabilise the economy while not borrowing for day-to-day spending, Reeves controversially slashed the welfare budget last week to save £5 billion by the end of the decade.
She is also expected to ask the civil service to cut £2 billion from its budget in the government’s spending review on Wednesday, having already reduced other costs like the winter fuel allowance since getting into office.
So presenter Kuenssberg asked the chancellor on Sunday: “Rachel Reeves, you’re cutting welfare, you’re cutting spending, you’re cutting regulation. Are you really a Labour chancellor?”
Reeves replied: “Well, first of all, let me just take this head-on. In the last parliament, it was the worst parliament ever for living standards and although the previous government taxed more, people were paying more and getting less in return.”
She said since Labour were elected eight months ago, they’ve increased the national living wage, they’ve reduced NHS waiting lists for five months in a row, and increased taxes on the wealthiest people, and on businessses.
She added that there would be free breakfast clubs at primary schools from April to help working parents.
“So I reject that characterisation of what we’re doing,” the chancellor said. “And on welfare, let me just say this – the system is in bad need of reform, I don’t think anyone disagrees with that.”
She said one in eight young people are not in education, employment or training – which is why they are investing £1 billion of targeted support to get the public back into work.
But Kuenssberg replied: “The problem is, when our viewers look at what you’ve done, they don’t think that you are sticking to the promises that you made.”
The presenter then quoted from one member of the public who told her programme, Sunday with Laura Kuenssberg: “When people voted Labour (to remove the Tories) they did not expect a continuation of Tory policies.”
The chancellor hit back by pointing out a thousand people a day are going on personal independence payments, and noting that those who need support will still get it.
“Politics is about often what people feel the government is doing in their name,” Kuenssberg replied, noting that people at home have been given the sense “you are not the Labour Party they voted for in the election”.
“Have you not got the story right, or are they right to think that you’ve changed your mind on some things?” She asked.
Reeves just pointed to the £22bn “black hole” Labour inherited from the Tories in the public finances, and said it required “difficult decisions” to resolve.