Reeves to defend budget amid row over deficit claims – UK politics live

8.49am GMT Chancellor to defend budget amid deepening row over deficit claims Good morning and welcome to our live coverage of UK politics. The chancellor, Rachel Reeves, has become engulfed in a politically damaging row about what she told the public about the state of the British economy ahead of last week’s budget. Reeves had claimed that a downgrade to the UK’s predicted economic productivity would make it more difficult to meet her self-imposed fiscal rules. She used a speech on 4 November to suggest tax rises were needed because poor productivity growth would have “consequences for the public finances”. It was seen by many as an attempt to clear the way for breaching Labour’s manifesto pledge on income tax by raising rates. But the Office for Budget Responsibility (OBR) – the budget watchdog – on Friday said it had informed the chancellor as early as 17 September that an improved tax take from growing wages and inflation meant the shortfall was likely smaller than initially expected, and told her in October it had been eliminated altogether. The OBR’s disclosure has prompted opposition figures to urge the Financial Conduct Authority (FCA) to investigate whether the Treasury deceived the public. The Conservatives have accused Reeves of “market abuse”, which is a civil offence. No 10 has denied Reeves misled the public over the state of the country’s finances ahead of the budget. The prime minister, Keir Starmer, is expected to give his backing to the budget in a speech tomorrow, saying it will help ease cost of living pressures and lower inflation, and will reportedly announce plans to go “further and faster” to encourage growth. Reeves will be questioned about the row this morning on the broadcast rounds so stick with us for the latest developments.