Rachel Reeves has cut winter fuel payments for 10 million wealthier pensioners as she sought to plug a £22bn ($28bn) black hole in the public finances she said was "covered up" by the Conservatives, while hinting at tax rises in her autumn budget.
The chancellor also shelved the long-delayed cap on what people would pay for social care as she ignited a bonfire of Tory policies she said would be needed to deal with the deficit, telling MPs: "If we cannot afford it, we cannot do it." Yet almost half of the shortfall, £9.4bn, was a result of her decision to fund above-inflation public-sector pay recommendations in full, helping to reverse years of declining wages and see off the threat of industrial action.
Her response to a Treasury internal audit commissioned by Labour within days of taking office heralds a brutal first budget on 30 October, when she is expected to increase some taxes as well as cutting welfare and public spending.
"We don't want to increase taxes but we are in a position where there was a £22bn gap between the money the previous government spent and what they budgeted for, and so we are going to have to make difficult decisions," she told a Treasury press conference.
Denne historien er fra August 02, 2024-utgaven av The Guardian Weekly.
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Denne historien er fra August 02, 2024-utgaven av The Guardian Weekly.
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Starlink's conquest of the Amazon leaves Brazil in a dilemma
The helicopter swooped into one of the most inaccessible corners of the Amazon rainforest. Brazilian special forces commandos leaped from it into the caiman-inhabited waters below.
Dalai Lama's mountain town feels the strain of tourist boom
SUVs and saloon cars pass slowly along McLeod Ganj's narrow one-way Jogiwara Road, blaring horns at pedestrians and scooter riders and playing loud music.
'I am all the world' The brutal rule of a West Bank settler
Palestinians tell ofblacklisted Yakov's reign across the Jabal Salman valley and heisjust one of many violent bosses
Stormy waters New flashpoint emerges in South China Sea dispute
Hopes that tensions in the South China Sea might ease have been short lived.
'Justice delayed' Why trust in public inquiries to bring closure is fading
After the final report of the Grenfell fire inquiry was published, Hisam Choucair, who lost six family members in the blaze, said: \"We did not ask for this inquiry... It's delayed the justice my family deserves.\"
Celeriac soup with almond pangrattato
I'm not ashamed to say that as soon as September hits, my stick blender comes out. Just as I embrace salads when the clocks go forward in the UK, I wholeheartedly throw myself into soup season once the summer holidays end. Autumn is approaching in the northern hemisphere and I'm ready with my ladle. Celeriac is one of my favourite soup heroes, because it gives the creamiest, silkiest finish with little effort. You don't have to make the almond pangrattato, but it is a wonderful addition.
Are smoke signals telling me to make an oil change in the kitchen?
Should you that is, not can you) cook with extra-virgin olive oil? Antonio, Atlanta, Georgia, US
Going underground
A darkly humorous encounter between an American spy-cop and the members ofan eco-commune she is hired to infiltrate
All work and no play
Hard Graft, a powerfulnew London exhibition, focuses onworkers’ exploitation, from the ruined hands ofa washerwoman to mothers forced to sell their bodies
What the princess and the shaman tell us about hereditary privilege
It should have been an Instagram-perfect wedding image, but it turned out to be something more embarrassing.
