Rachel Reeves has claimed the Conservative manifesto contains £71bn of unfunded commitments, warning it could result in “a second Tory mortgage bombshell” as the parties continue to clash over tax and spend policies.
Labour’s shadow chancellor referenced former prime minister Liz Truss’s disastrous mini-budget during a rebuttal press conference held hours after Rishi Sunak launched the Conservative party’s General Election policy document.
She said: “The consequence of an increase in day-to-day borrowing to fund the commitments made in this manifesto would amount to a second Tory mortgage bombshell, because higher borrowing at this scale would force the Bank of England to increase interest rates.
“The result would be an increase in the average mortgage totalling £4,800 over the course of the parliament.”
Labour’s warning of a steep rise in mortgage costs, is positioned as a counterpoint to the Tories’ claim that a government led by Sir Keir Starmer would hike taxes by £2,000—a figure criticised by the UK statistics watchdog.
Labour’s analysis relies on a series of assumptions to estimate the costs potentially attached to Tory policies. In response, the Conservatives accused the shadow chancellor of “confusing facts and fiction on numbers.”
