A SENIOR Labour MP has hit out at Rachel Reeves for a “glaring error” over her U-turn on income tax rises.
Dame Meg Hillier, who chairs the Treasury select committee, said that “over-egging” in the build-up to last month’s Budget led to uncertainty.
She said that both Ms Reeves and her department launched “several grenades onto the pitch” ahead of delivering the fiscal event.
The Chancellor is accused of misleading the public over the state of the country’s finances and using a breakfast-time news conference to hint at a manifesto-breaking tax raid.
But the Labour MP said that ultimately changing her mind “left everyone either confused or annoyed”.
A decision was made to freeze income tax thresholds rather than increase the rates of income tax.
She added that there was a balance to be struck between preparing both the public and financial markets but still ensure Parliament is the avenue for announcing major decisions.
She said: “The Chancellor has wanted this job for most of her life. It is her responsibility to identify and accept the mistakes made within the process she leads and make sure they do not happen again.
“Now, more than ever, the country needs leadership with the strength to acknowledge what has gone wrong and learn from it.”
Ms Reeves earlier this week told the Treasury select committee that there were “too many leaks” which had been “very damaging”.
