Darren Jones defends Rachel Reeves for misrepresenting tax increases to cabinet

1 December 2025

Chancellor Rachel Reeves did not "mislead" Prime Minister Keir Starmer's chief secretary, Darren Jones, "in the slightest."

Reeves was accused of not informing the Cabinet and public that the OBR predicted a government surplus. This suggests she exaggerated the budgetary challenge to justify historic tax increases. OBR data released on Friday show that the watchdog notified the Treasury on October 31 that the spending deficit had been filled and the government was on pace for a £4.2 billion surplus.

Still, Reeves and Starmer warned for weeks that the state finances were so terrible they might not be able to implement campaign promises like decreasing income tax. Reeves' £26 billion budget included the largest tax rises in almost ten years. In an uncommon move, the OBR issued its budget estimates early to calm public finances concerns.

Jones told Mornings with Ridge and Frost listeners that Reeves was "right all along" about needing more money. He claimed early OBR estimates didn't account for the government's projected revenue to safeguard the economy from shocks.

He said, "The numbers kept changing before the budget; you don't know the final number until the end." "The chancellor increased it from £10 billion to around £20 billion because we needed more space."

Jones intervened after The Times reported that ministers were concerned Reeves hadn't addressed "the reality" of OBR forecasts. Opposition parties believe she misled voters and upended markets about the budget.

"Of course I didn't [lie]." Reeves told. She stated that the state budget was in peril and required harsh decisions.

Last budget day, the OBR predicted fiscal headroom would climb to £21.7 billion, above Treasury expectations. Reeves thinks the government needs this cushion to respond promptly to economic shocks.

When, while the lovely valley teems with vapour around me, and the meridian sun strikes the upper surface of the impenetrable foliage of my trees, and but a few stray gleams steal into the inner sanctuary, I throw myself down among the tall grass by the trickling stream; and, as I lie close to the earth, a thousand unknown plants are noticed by me: when I hear the buzz.

Prime Minister Sir Keir Starmer will defend the budget on Monday. He will argue it "moves forward the government's program of national renewal" and restores UK economic policy after years of disarray.