The REAL Labour agenda? Tony Blair warns UK faces £50bn in tax hikes by 2029 after Rachel Reeves 'paves the way to raise the burden' by warning public finances are in the 'worst state since the Second World War'

Fears are mounting implicit a Labour taxation raid contiguous after Tony Blair warned Keir Starmer he could request to propulsion up the load by £50billion.

The erstwhile PM raised interest that the other gross volition beryllium needed unless the authorities 'changes approach' connected issues similar AI.

But the involution volition rise caller alarm aft caller Chancellor Rachel Reeves was accused of paving the mode for taxes.

Ms Reeves issued a doom-laden informing yesterday astir the 'spending inheritance' from the Tories.

And she revealed she has already commissioned Treasury officials to behaviour a reappraisal of the nationalist finances 'so that I tin recognize the afloat standard of the challenge'.

Conservatives said it showed their predetermination onslaught lines astir Keir Starmer not being honorable astir his taxation plans were coming true. 

Labour's manifesto pledged the enactment would not rise the header rates connected income tax, National Insurance or VAT. However, Rishi Sunak argued that determination were a big of loopholes successful the commitments that Sir Keir would exploit.

The involution by Sir Tony - who is simply a adjacent state of Sir Keir - came successful a study released by his institute today. 

It suggests that the authorities indispensable harness AI to boost productivity, oregon look an adjacent higher taxation load than that already 'baked in'.

Just to stabilise debt, the investigation recovered the UK is connected people to request a 1.9 per cent summation successful the taxation to GDP ratio by 2029, equivalent to astir £53billion astatine existent prices.

In a circular of interviews this morning, Sir Tony told BBC Radio 4's Today programme helium was not predicting that is what Labour would do.

'If you don't bash this the aboriginal is 1 successful which you are going to beryllium poorer.' 

Despite the repeated assurances connected taxation during the campaign, Labour frontbenchers besides near wriggle-room by suggesting they could unfastened the authorities books and find they were adjacent worse than feared.

That stance was derided astatine the clip by Paul Johnson, manager of the respected IFS think-tank, who said: 'The books are open. Everyone knows precisely the ­problems a caller authorities volition inherit.'

Ms Reeves yesterday suggested that her archetypal 72 hours successful the occupation had ­convinced her the concern mightiness so beryllium worse than it seemed.

In her archetypal large code arsenic ­Chancellor to concern leaders astatine the Treasury, she said: 'I person repeatedly warned that ­whoever won the General Election would inherit the worst acceptable of circumstances since the Second World War,' she said.

'What I person seen successful the past 72 hours has lone confirmed that our system has been held backmost by decisions deferred and decisions ducked, governmental self-interest enactment up of the nationalist interest.' 

She added: 'That is wherefore implicit the play I instructed Treasury officials to supply an appraisal of our spending inheritance truthful that I tin recognize the afloat standard of the challenge.'

A Tory enactment ­spokesman accused the Chancellor of ­preparing the crushed for  swingeing taxation rises.

'Rachel Reeves herself said you don't request to triumph an predetermination to find retired the authorities of the nationalist finances, admitting that with the OBR, determination is already elaborate nationalist scrutiny of the country's finances,' the spokesperson said. 

'We warned that Labour would effort this ruse arsenic a origin to raid pensions and rise taxes. It is present wide that is coming to pass, and the British radical volition wage the price.'

A Treasury root denied that Ms Reeves was already plotting a caller taxation raid, saying her code was focused connected the request to boost ­economic maturation successful bid to conscionable aboriginal spending needs without raising taxes.

In her speech, the Chancellor said economical maturation was the 'only way to the improved prosperity'. 

She besides took a swipe astatine national barons who are already urging her to unfastened the spending taps.

Unite national brag Sharon ­Graham urged her to scrap Labour's choky fiscal rules and determination tens of billions into Britain's 'crumbling nationalist services'.

But Ms Reeves said she did not hold with those arguing that, present the predetermination is won, 'the clip for caution is over'.

She said her borrowing rules would stay successful place, adding: 'I cognize that galore of you aren't utilized to proceeding this aft caller years, but I judge that the promises that a enactment is elected connected should beryllium delivered connected successful government.'

Sir Tony said AI could make yearly savings of £10billion by the extremity of the Parliament and £35billion successful a decennary – but nonaccomplishment to clasp the exertion would permission the UK 'much poorer'. 

Sir Tony besides told the Guardian that Labour indispensable beryllium pugnacious successful tackling immigration, to debar a further emergence successful 'populism'.

'Progressives should beryllium reasoning astir the answers, but you've got to recognize what the populist does,' helium said.

'The populist usually doesn't invent a grievance, they exploit the grievance. If you privation to adjacent disconnected their avenues for expanding support, you've got to woody with the grievance. 

'That's wherefore Keir is implicit close successful saying you've got to person controls connected immigration.

'That doesn't mean to accidental we don't observe the bully that migration tin do, due to the fact that it does an immense magnitude of bully for this country, but you bash request to person controls.'

Sir Tony besides sounded a sceptical code connected Labour's plans to deed Net Zero emissions by 2030, including doubling onshore upwind and quadrupling offshore wind. 

'I'm 100 per cent successful favour of Labour doing everything it tin to conscionable its targets, truthful don't misunderstand me,' helium said. 

'It's conscionable 1 happening I deliberation Labour should beryllium precise unfastened astir is the Tories connected this, arsenic successful truthful galore different areas, person near a implicit mess.

'The spread betwixt what they promised we would beryllium successful a presumption to bash and wherever we are present is massive, and you're talking astir quadrupling renewable vigor … with the champion volition successful the satellite its going to instrumentality immoderate time. 

'It's not that I deliberation Labour should springiness up connected its ambitions. It's conscionable it should beryllium realistic astir however pugnacious it's going to be.'