Labour won’t turn things around immediately, Reeves says

Shadow chancellor says Labour would inherit the worst economy since World War Two. She said she would be identifying ways to pay for existing pledges on the NHS and schools. The interview came a few days after Chancellor Jeremy Hunt set out the government’s tax and spending plans in his Budget. Labour had previously said it would use the £2bn it expected to raise from these changes to pay for improvements in the NHS and breakfast clubs in schools.

Mr Hunt has allocated these funds to help pay for the cut to National Insurance, a policy Labour has said it will not reverse if it came to power. Ms Reeves confirmed Labour would keep the government’s cuts to the higher rate of capital gains tax on the sale of second homes. She also pointed to the party“s plans to tax private equity executives and introduce VAT and business rates in private schools. In his Budget, Mr Hunt said he would retain a planned increase in day-to-day public spending at 1% above inflation every year until 2029.

This means some departments could see significant budget cuts as some areas of public spending - such as schools and health - have their funding protected. The Labour Party is set to win the next general election on May 7. The party is expected to win a majority of seats in the House of Commons. The Labour party is also expected to take control of the Commons in the next few months.

The next election will be held in May 2015. Chief Secretary to the Treasury Laura Trott said Labour were unable to say how they would pay for their spending commitments.

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