𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Sir Keir Starmer’s independent ethics adviser has dismissed calls for an investigation into whether Rachel Reeves lied about the state of the public finances ahead of the Budget. The Chancellor remains in hot water over claims she misled voters about the need to hike taxes for a second year running, and claims she manipulated the market in doing so.

Ms Reeves repeatedly cited the OBR’s reduction in projected productivity growth over the coming years, which cost her £16 billion, but failed to admit that this was offset with higher tax receipts, leaving no black hole at all. Following the Budget, Nigel Farage wrote to the PM’s independent ethics advisor Sir Laurie Magnus demanding an investigation into whether the Chancellor had lied. The ministerial code demands ministers be “as open as possible with Parliament and the public”.

Mr Farage said the Chancellor had been pushing a “sustained public and media campaign portraying the public finances as being in a state of collapse in order to prepare political ground for approximately £30bn of tax increases.”

Where serious allegations are raised by a Member of Parliament and supported by contemporaneous reporting, the public is entitled to expect that they will be examined rather than dismissed.

“I therefore ask you to advise the Prime Minister without delay that this matter meets the threshold for formal investigation under the code, and that such an investigation should begin immediately.”

However Sir Laurie has now cleared Ms Reeves of wrongdoing, and has written to Mr Farage that he will not conducting a formal investigation.

It comes a day after the Financial Conduct Authority also declined to open an investigation into Ms Reeves.

It’s the second time Sir Laurie has cleared Ms Reeves in wrongdoing following the row about her letting her south London home out without a licence.

On Monday, top minister Darren Jones said: “The good news about the independent ethics adviser is that Keir Starmer made them independent. It’s for Laurie Magnus to decide what he wants to do and how to respond to Nigel Farage’s letter and that’s the right thing.”

Ms Reeves has consistently denied the need for any investigation, and refused to apologise if voters felt misled.

The Chancellor was told on September 17 by the OBR that her so-called fiscal blackhole was just £2.5 billion.

Opposition politicians have accused her of hiding this fact in order to hike taxes to fund more welfare spending.