Why are Labour accusing the last Tory government of a £22billion fiscal cover-up?

In brief…

• Chancellor Rachel Reeves has unleashed an attack on the Conservative Party for an alleged cover-up of a £22 billion fiscal black hole
• To plug the gap, Reeves is axing Tory policies as well as Labour plans
• Former Chancellor Jeremy Hunt denies lying about the state of the country’s finances, and a bitter feud between the pair appears to be laying the groundwork for what is to come, say The News Agents.

“If we cannot afford it, we cannot do it.”

The new phrase Rachel Reeves repeated on Monday as she blamed the Conservative Party for the state of the country’s public finances.

It was one of many she drew on as she unleashed an attack on her Tory predecessor Jeremy Hunt.

She says he gave the country “false hope” for allegedly covering up a £22 billion fiscal black hole, and now Reeves claims she has inherited the mess.

Expect spending cuts, axed plans and “difficult decisions” on taxes come the budget in October, which Reeves says are no thanks to the Tories.

So which plans is she scrapping, what is she bringing in, and what does her feud with Hunt say about the state of British politics?

Here’s what The News Agents say

Jon Sopel is pretty convinced the new Chancellor is not putting on a show, and truly is angry about what she has inherited.

He says: “So much of what you sense happens at Westminster makes you think it's slightly synthetic, it's slightly conflicted and that it's a bit of an act.

“I don't think there was any act from Rachel Reeves about her fury, or that there was any act from Jeremy Hunt, who looked like he was seething at what he was listening to.”

Jon adds that this is an “important battle taking place because it will lay the groundwork for the months and years to come”.

What Reeves is seemingly seething about is that many of the policies the Tories promised to bring in were "completely uncosted, unfunded and there wasn't the money there”, says Emily Maitlis.

Emily adds: “She’s left us with this alarm bell-ringing line which is ‘more difficult decisions to come in October’.

“What we're hearing is, brace yourself. And I guess it’s up to us now to try and figure out where those tax increases are coming from.”

Which plans is Reeves scrapping?

Of the many plans now axed, Reeves claims the government can save £800 million by axing the Conservative Party’s plan to send asylum seekers to Rwanda.

She is also scrapping the winter fuel payment for some pensioners. Instead of all pensioners receiving the payments, they will now be means-tested. The Chancellor estimates this can save £1.4billion. 

Reeves has also announced the cancellation of a series of planned social care reforms. This includes the axing of the plan to implement a cap on social care, which was drawn up not by the Tories but by the Labour Party.

How has Jeremy Hunt responded?

Hunt does not accept Reeves’ claims that the “previous government was deluded, out of touch and irresponsible”.

He said in the House of Commons on Monday: "The chancellor will fool absolutely no one with a shameless attempt to lay the ground for tax rises she didn't have the courage to tell us about.”

Hunt has now written to the head of the UK’s civil service Simon Case asking for an “immediate answer” about whether Reeves is lying or whether the civil service in fact covered this up.

Jon says: “Jeremy Hunt is having none of it, he is not going to allow [it]. He is saying ‘yes we lost the election but you are not going to rewrite the history of my government. It’s my legacy.”