'It is time to level with the public and tell them the truth'

Rachel Reeves will set out the 'true state' of the public finances, claiming the Conservatives 'covered up' how bad things really are.

The Labour Chancellor will vow to 'fix the foundations of our economy' as she shares the findings of an audit into the government's finances in Parliament on Monday (July 29). But the warning has sparked fears that spending cuts and tax hikes could be on the way.

Her predecessor Jeremy Hunt has warned that putting taxes up will be the 'biggest betrayal by a chancellor in her first budget that we have ever seen'. Addressing claims of a 'cover up', the Conservatives' Shadow Chancellor said that 'the books have been wide open'.

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But, according to the Treasury, the previous government has overspent this year's budgets by billions of pounds after making a series of 'unfunded promises'. Ms Reeves will set out how the government will balance the books with more detail to come later this year.

Speaking in the House of Commons on Monday afternoon (July 29), she is expected to say: "Upon my arrival at the Treasury three weeks ago, it became clear that there were things I did not know. Things that the party opposite covered up from the country.

"It is time to level with the public and tell them the truth. The previous government refused to take the difficult decisions.

"They covered up the true state of the public finances. And then they ran away. I will never do that.

"The British people voted for change and we will deliver that change. I will restore economic stability. I will never stand by and let this happen again.

"We will fix the foundations of our economy, so we can rebuild Britain and make