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Winter fuel payments scrapped for pensioners not on benefits

The Labour Party has axed the winter fuel payment for pensioners not receiving pension credit, after Chancellor Rachel Reeves declared that there’s a £22 billion shortfall in public finances.

She also cancelled road and rail projects, including a road under Stonehenge.

Reeves blamed the previous Conservative government on the shortfall, as more than £6.4 billion has been wasted on the scrapped Rwanda plan.

Sarah Coles, head of personal finance, Hargreaves Lansdown, said: “Rachel Reeves has painted a grim picture of the public finances, axing spending pledges made by the former government that weren’t already funded. She also set the scene for hard choices and tougher times, including spending and tax.

“She has confirmed that in this October’s Budget, she will stand by the tax pledges made in the manifesto, but this will do nothing to quell rumours that the Budget could usher in changes to capital gains tax or inheritance tax, or mean scaling back tax advantages of pensions – all of which could take a horrible toll on savers and investors.”

The Budget will take place on October 30th, while Reeves said it will involve taking “difficult decisions” across welfare, spending and tax.

However she repeated Labour’s manifesto pledge that it will not increase VAT, National Insurance, or Income Tax.

In response, Shadow Chancellor Jeremy Hunt said: “What’s the point of going to New York or Brazil to bang the drum for more investment if you come home with a cock and bull story about how bad everything is?

“She should stop playing politics with Britain’s reputation and get on with running the economy.”

He added: “In her first big moment, she breaks that trust with an utterly bogus attempt to hoodwink the public about the choices she has.

“Over 50 times in the election, they told us they had no plans to raise taxes.

“Now in a U-turn that will forever shame this Labour government, she is laying the ground to break her word, and when she does, her first Budget will become the biggest betrayal in history by a new chancellor, and working families will never forgive her.”

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