Rachel Reeves faces calls to quit after watchdog contradicts her £30bn ‘black hole’ warning

Rachel Reeves Faces Pressure to Resign

Chancellor Rachel Reeves is under mounting pressure after it emerged that her warnings about a £30 billion fiscal “black hole” in public finances were significantly overstated.

Watchdog Contradiction

The Office for Budget Responsibility (OBR) clarified that the actual shortfall was closer to £2.5 billion, not £30 billion as Reeves had earlier claimed. The discrepancy has triggered cross-party criticism, with opposition figures accusing her of misleading the public and causing unnecessary alarm about the state of the nation’s finances.

Political Repercussions

Members from both Labour and opposition benches have urged Reeves to issue a public clarification or consider stepping down. Critics argue that overstating the figures undermines confidence in economic forecasting and public finance management. Supporters within Labour insist that the Chancellor acted on the information available at the time and sought to highlight the challenges facing the economy.

Public and Expert Reactions

Economists and political commentators have debated whether the error was a miscalculation or a political choice intended to strengthen the case for fiscal caution. Several watchdog reports have since been reviewed to understand how the original figure was produced.

"The difference between £30 billion and £2.5 billion is not a rounding error — it’s a fundamental question of credibility," said one senior opposition MP.

Next Steps

As calls for accountability grow, Reeves faces increasing scrutiny over her handling of public communications and the government’s broader fiscal narrative. The Treasury has pledged to release a detailed breakdown clarifying the basis of the disputed figures in the coming days.

Author summary: Rachel Reeves faces cross-party criticism after overstating a £30bn fiscal gap that the OBR later said was only £2.5bn, prompting calls for her resignation.

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London Evening Standard on MSN London Evening Standard on MSN — 2025-11-29

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