Sir Keir Starmer hit by second ministerial resignation in six months as Tulip Siddiq steps down as anti-corruption minister
No 10 refuses to rule out emergency budget as fresh inflation figures due
Rachel Reeves has opened the door to emergency spending cuts as No 10 refused to rule out the possibility of an emergency budget in the spring.
Facing a grilling from MPs in the Commons on Tuesday over the rising cost of government borrowing and the recent falls in the value of the pound, Ms Reeves said there was a need to go “further and faster” in search of economic growth.
She declined to rule out future spending cuts, saying she would not write “five years of budgets in the first six months of a Labour government”, before doubling down on a commitment to stick to the governments’ fiscal rules. The rules require day-to-day spending to be met from revenues rather than further borrowing.
In addition, Downing Street refused to rule out an emergency budget in the spring.
It comes as the fresh inflation figures are due this morning. UK inflation is set to have stayed the same in December as economists anticipate a “temporary reprieve” before price rises pick up pace this year.
No 10 refuses to rule out emergency budget as fresh inflation figures due: Live