£20bn black hole in budget won't mean austerity

But we must be honest with public, says MP

-  CHRIS MCCALL

A SCOTTISH Labour MP has denied Rachel Reeves will unleash a new era of austerity in order to plug a £20billion black hole in the UK Government's finances.

The new Chancellor is expected to blame the Tories for covering up the true extent of the country's dire fiscal position in a statement today.

Reeves will claim Britain is "broke and broken" as she publishes the details of a Treasury audit that will set out the stark spending inheritance left by the Conservatives.

But East Renfrewshire MP Blair McDougall yesterday denied there would be severe public spending cutbacks, amid SNP claims that Labour would slash spending on the NHS and transport.