Labour accuses Chancellor of ‘fanning the flames’ of plummeting pound

SHADOW chancellor Rachel Reeves accused Kwasi Kwarteng of “fanning the flames” of Sterling’s plummet by promising yet more tax cuts.

She laid into the Tories as she tried to draw an economic dividing line with the Government.

Rachel Reeves accused Kwasi Kwarteng of 'fanning the flames' of Sterling’s plummet by promising yet more tax cuts

Rachel Reeves accused Kwasi Kwarteng of ‘fanning the flames’ of Sterling’s plummet by promising yet more tax cutsCredit: Getty

It came after Chancellor Mr Kwarteng said of the party’s low-tax gamble to overhaul the economy: “There is more to come.”

But Ms Reeves told the BBC: “It is incredibly concerning.

“I think many people had hoped over the weekend things would calm down but I do think the Chancellor sort of fanned the flames on Sunday in suggesting there may be more stimulus, more unfunded tax cuts.”

She added that PM Liz Truss and the Chancellor were like “two desperate gamblers in a casino, chasing a losing run”.

She added: “But they’re not gambling with their money, they’re gambling with yours.

“They’ve lost credibility, they’re losing confidence, they’re out of control.

“The Chancellor, instead of doubling down on his position, needs to now set out credible plans.”

Ms Reeves vowed at Labour’s conference to reinstate the top 45p rate of income tax and use it to bolster the NHS if it won the next election.

But there is still a huge hole in the plan — as Labour has not said how it would fund the Tory proposals for £43billion of spending.

In a keynote speech at the conference, she hit out at her Tory counterpart for promising “a tax cut for the wealthiest one per cent”.

But she did not say whether Labour would ditch other Tory tax cuts — which will be paid for by borrowing billions of pounds.

She said: “In emergency situations — and we are absolutely in a national emergency at the moment — you can borrow.”