Ривз оправдан от вводящих в заблуждение общественность по повышению налогов на £30 млрд

Chancellor Rachel Reeves has faced questions over statements made ahead of the Budget (PA) Ben Birchall

Chancellor Rachel Reeves will not face an investigation into allegations she misled the public about Britain's finances to justify £30 billion in tax increases. Sir Laurie Magnus, the Prime Minister's independent ethics adviser, dismissed calls for a probe on Friday, clearing Reeves of wrongdoing.

The decision follows a formal demand from Reform UK leader Nigel Farage, who wrote to Sir Laurie accusing Reeves of conducting "a sustained public and media campaign portraying the public finances as being in a state of collapse in order to prepare political ground for approximately £30 billion of tax increases." Farage claimed these tax hikes were "discretionary policy choices rather than unavoidable fiscal necessity" according to Office for Budget Responsibility (OBR) figures.

The Financial Conduct Authority also declined to open an investigation into the Chancellor a day earlier.

The controversy

The accusations center on claims that Reeves deliberately painted an overly pessimistic picture of public finances ahead of the Budget. On November 4, she warned that UK productivity was weaker "than previously thought," signaling potential tax rises.

However, documents revealed last Friday showed the OBR had informed the Treasury on October 31 that higher tax revenues from increased wages would offset the productivity downgrade. This meant Reeves would meet fiscal targets with a £4.2 billion surplus without needing additional tax increases.

Opposition politicians allege Reeves concealed the true fiscal position — the OBR informed her of a £2.5 billion black hole on September 17 — to justify raising £26 billion in taxes for £16 billion in welfare spending.

Political fallout

The controversy sparked calls for Reeves's resignation from the Conservatives, SNP, and Reform UK. Tory leader Kemi Badenoch accused the Chancellor of lying to fund welfare spending increases.

The Daily Telegraph described her actions as "staggering mendacity," while the Daily Mail argued Reeves, not OBR chair Richard Hughes, should have resigned over the "Budget fiasco."

Downing Street rallied to Reeves's defense, insisting there was "no attempt to deceive in any form." The Chancellor denied the accusations, arguing tax increases were needed to build a fiscal buffer against unexpected costs.

Top minister Darren Jones emphasized the independence of the ethics adviser on Monday: "The good news about the independent ethics adviser is that Keir Starmer made them independent. It's for Laurie Magnus to decide what he wants to do and how to respond to Nigel Farage's letter and that's the right thing."

The ministerial code requires ministers to be "as open as possible with Parliament and the public."

This marks the second time Sir Laurie has cleared Reeves, having previously dismissed allegations about her renting a south London home without a license.

Richard Hughes resigned as OBR chair following the organization's accidental early publication of its Budget analysis, adding another dimension to the political turmoil surrounding the Budget.

Note: This article was created with Artificial Intelligence (AI).