‘He lied’: Rachel Reeves claims Jeremy Hunt ‘covered up true state’ of UK’s finances

The chancellor has said her predecessor Jeremy Hunt “lied” as she accused him of deliberately covering up the truth about the state of the UK’s finances.

After announcing a series of spending cuts on Monday, Rachel Reeves said it was “unforgivable” the Conservatives left a £22bn funding black hole.

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She told Sky News: “Jeremy Hunt covered up from the House of Commons and from the country the true state of the public finances. He did that knowingly and deliberately.

“He lied. And they lied during the election campaign about the state of the public finances.”

Ms Reeves added that the Conservatives promised tax cuts during the campaign “all the while knowing there was already a £22bn black hole in the public finances”.

“It is beyond reckless and irresponsible,” she said.

“It is unforgiveable and they should never be allowed to have their hands on power and our public finances again.”

Mr Hunt said he was “of course” angry at being called a liar but told Sky News: “I’m disappointed more than anything else.”

He added: “I thought more highly of Rachel Reeves, I actually praised her on election night as being a committed civil servant.

“I think she can do better than that.

“I think it’s very disappointing that the new government is choosing to do politics this away, I think it actually discredits politics when people call each other liars.”

Ms Reeves stopped short of calling Mr Hunt a liar during her speech in the House of Commons yesterday, where calling an MP a liar can lead to a suspension.

But she did not hold back while talking to Sky News this morning.

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Analysis: Chancellor’s spending cuts

Ms Reeves doubled down as she told Sky News the Conservative government did not give the independent pay review bodies a remit for what was affordable this year.

The bodies advise the government on what public sector employees, such as those in the NHS, should be paid each year after getting remits from the government – who are not bound by the recommendations.

Ms Reeves said she “did not know until I became chancellor” that the previous government had not provided an affordability remit.

She said the cost of implementing the pay review bodies’ recommendations is £9.4bn and has asked government departments to absorb £3.2bn to reduce the cost of settling disputes with public sector workers.

“But the alternative is a situation where we continue to struggle to recruit and retain soldiers and officers in our armed forces, where we continue to struggle to recruit doctors and nurses in our NHS and where we struggle to retain public sector workers,” she said.

“And that has a cost as well.”

Ms Reeves admitted she had to make “difficult decisions” on Monday, including halting the winter fuel payment for some pensioners to save £1.5bn a year.

She warned: “There are more difficult choices to come. I’m not singling out any group.

“There will be more difficult choices to come in the autumn, but it was important to make this choice yesterday to get our public finances on a firmer footing and to get a grip of public spending.”