Labour’s main union donor turns on Reeves amid mounting pressure on Chancellor to resign after ‘black hole’ lie

LABOUR’S biggest donor has launched a scathing attack on Rachel Reeves after she was accused of lying to the country to justify her tax raid.

Unite boss Sharon Graham turned on the Chancellor and said people were now “unable to trust Labour”.

Woman in a blue suit holding the Chancellor of the Exchequer's red budget box.
Rachel Reeves leaves 11 Downing Street with the budget despatch box to present her second Budget statement in the House of CommonsCredit: Getty
Labour Party's annual conference in Liverpool
Sharon Graham, general secretary of Unite the UnionCredit: Reuters

Workers bore the brunt of the hikes in the Budget earlier this week as the Ms Reeves funded huge increases to the welfare bill.

She spent weeks warning Britain she had “tough decisions” to make, claiming a shock productivity downgrade had blown a huge gap in the nation’s finances.

She claimed a shock productivity downgrade had blown a huge gap in the nation’s finances.

But in a bombshell twist, the Office for Budget Responsibility has revealed it told Reeves she actually had a £4.2billion surplus, meaning her own fiscal rules were already met without raising a single tax.

Amid all this, Ms Graham, the general secretary of Unite, said that Unite’s one million members are no longer able to trust the Labour party – as many face paying higher taxes. 

She told The Telegraph: “The Budget was not a workers’ budget; it will result in workers paying more as income thresholds have been frozen.

“One in four workers, many of them Unite members, face paying higher tax rates in the future, while also struggling to keep their heads above water.

“If the Chancellor thinks workers are not noticing the underhand continuation of this shameful stealth tax, she is wrong. It’s a tax on workers. It’s clear.”

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