Watch: Rachel Reeves holds news conference after cutting winter fuel payments for millions of pensioners

Watch as Rachel Reeves holds a press conference after outlining Labour’s economic plan in a speech on Monday 29 July.

The chancellor warned of “difficult decisions” as she accused the previous government of leaving £21.9 billion of unfunded commitments that it had “covered up from the country”.

In a statement to Parliament, she set out “immediate action” to address the shortfall by £5.5 billion, with the rest of the gap to be addressed at a Budget on 30 October.

Public sector workers are in line for a pay rise but 10 million pensioners will lose out on winter fuel payments in an attempt to fill the hole, Ms Reeves announced.

In a hint that taxes may have to increase, she said: “I have to tell the House that the Budget will involve taking difficult decisions to meet our fiscal rules across spending, welfare and tax.”

Ms Reeves added it will be “a budget to fix the foundations of our economy and it will be a budget built on the principles that this new Government was elected on”.