Reeves warns more difficult choices to come after axing winter fuel payment to plug ‘£22bn black hole’ - live

Rachel Reeves has warned “more difficult choices” are coming after axing winter fuel payments for many pensioners in a bid to help plug a £22 billion black hole in the public finances.

The chancellor unveiled plans to tackle the projected overspend, including cuts to infrastructure projects and an end of winter fuel payments for people not in receipt of means-tested benefits.

She accused the previous Tory government of “covering up” the truth about the UK economy as she revealed the results of the Treasury spending audit she commissioned during a speech in the Commons on Monday.

Afterwards, Ms Reeves doubled down on accusations that Jeremy Hunt “lied” to the public and to MPs during the election campaign about the state of public finances.

A new Office of Value for Money, a Labour manifesto pledge, will start work immediately to identify and recommend areas where the government can save money in the current financial year, she said.

The office is expected to announce public cuts worth billions to plug the gap in the public finances that could see the cancellation of projects including the road tunnel near Stonehenge and Boris Johnson’s New Hospital programme.