Keir Starmer declares he's PROUD of manifesto-breaking Budget and admits taxes did not need to rise

He referred to his family and their worries regarding bill payment and how their phone was cut off, before empathising with those in Britain who struggle to make ends meet and highlighted his pride in how last week's Budget aims to help them.

He said: "I remember my family sitting around the kitchen table worrying about the bills. How are we going to pay them all, and we as a family couldn't pay them all, and that's why, in our case, our phone was cut off, and that is still the reality of Britain for far too many people.

"And so, yes, I am proud. I'm proud we scrap the to child limit. I'm proud we're lifting over half a million children out of poverty. Proud we raise the national minimum wage again.

"That is what a Labour Government is for making life better for working families, unlocking their potential and giving our children a fair chance to get on.

"That is the story of the budget. There were necessary choices."

Opposition parties have accused Ms Reeves of lying about a fiscal "black hole" after it emerged the Office for Budget Responsibility had told her the public finances were in better shape than she suggested.

Sir Keir explained that a £16billion shortfall from downgraded productivity forecasts created a "difficult starting point" for the Budget.

The Prime Minister revealed that he and Ms Reeves initially considered breaking their election promise not to raise income tax rates when faced with the productivity review results.

"I didn't want to breach the manifesto," he said, adding that improved figures during the Budget process meant they could avoid that step.

He argued that with commitments to protect the NHS, reduce borrowing costs and tackle living expenses, raising revenue became "inevitable".

The Chancellor had warned in early November that weaker productivity would mean "lower tax receipts", though it later emerged the OBR had informed the Treasury that higher wages would offset this impact.

Conservative leader Kemi Badenoch has called for Ms Reeves to quit, arguing that people made "real decisions" based on the Chancellor's warnings about potential tax rises.

While stopping short of demanding the Prime Minister's resignation, Ms Badenoch said Sir Keir had "questions to answer" if he was involved in the briefings.

Reform UK leader Nigel Farage went further, suggesting Ms Reeves had "wilfully attempted to mislead the British public".

"The wrong person has resigned today, it should have been Rachel Reeves," Mr Farage said, referring to the OBR chairman's departure.

Richard Hughes resigned as chairman of the Office for Budget Responsibility following the accidental early release of Budget forecasts containing market-sensitive information.

The document was published almost an hour before Ms Reeves delivered her statement, which Mr Hughes called "a technical but serious error" in his resignation letter.

He said he took "full responsibility" for failings identified in an investigation into the incident.

Sir Keir criticised the leak as a "serious error" and "massive discourtesy" to Parliament, while expressing bemusement about why the OBR's 10-year productivity review was conducted now rather than at the end of the previous Conservative government.

The Prime Minister notably declined to back Mr Hughes, who had previously stated he would resign if he lost support from either the Chancellor or the Treasury select committee.

Our Standards: The GB News Editorial Charter