Recently sacked UK Chancellor of the Exchequer Jeremy Hunt has dismissed Rachel Reeves’ claims of a £22bn fiscal gap as baseless.
Despite stepping down from his post at 11 Downing Street just a month ago, Hunt appears relaxed and in good spirits as he addresses the allegations.
in Interview with The TimesRelaxing in a cafe in Godalming, Surrey, Hunt appeared to be enjoying a break from the pressures of his former role. However, Reeves, his successor, has sought to undermine his legacy by accusing him of financial mismanagement. She argues that Hunt’s policies have forced Labour into unpopular decisions, including cancelling infrastructure projects and looming tax rises.
Hunt has hit back forcefully at the allegations, calling them a political stunt and a sham. He highlights his historically friendly relationship with Reeves and expresses his dismay at her tactics. He believes her accusations are a major misstep that the Conservatives can exploit to challenge Labour’s justification for tax increases in the next budget.
To bolster his defence, Hunt contacted Simon Case, the Cabinet Secretary, seeking clarification on financial estimates that had been approved just weeks before Reeves’ allegations. He claims that if there had been such a large deficit, it would have been impossible for Treasury officials to overlook or hide it.
Speaking about the so-called fiscal gap, Hunt noted that while pressures on public finances were permanent, they were manageable through strategic planning and improved productivity. He criticised Reeves for choosing to implement £9.4bn in public sector pay rises without addressing productivity inefficiencies, which he saw as unsustainable.
Hunt also rejects allegations of overspending on the asylum system and the use of the reserve fund. He criticises Labour’s decision to scrap the Rwanda scheme, arguing that it has increased costs rather than saved.
Looking ahead, Hunt is preparing to launch a counter-offensive as he takes over as shadow chancellor of the exchequer temporarily. He has urged the Conservatives to address key issues such as immigration and the housing crisis to restore voter confidence, particularly among younger age groups.
Reflecting on the Conservatives’ recent election defeat, Hunt stressed the need for strategic patience and learning from the approach of Keir Starmer’s Labour Party. He remains confident in his legacy, pointing to current positive economic indicators as evidence of his effective management.
As the Conservative leadership contest develops, Hunt plans to return to the backbenches, leaving the door open for his endorsement but strongly advocating policy-based solutions to the challenges facing the party.