Labour accuses Sunak of ‘smoke and mirrors’ budget due to lack of new money

Chancellor concedes only 20% of transport funding boost is new and other commitments in 26bn spending plans are recycled

Labour has accused Rishi Sunak of presiding over a smoke and mirrors" budget after he conceded that just 20% of his biggest single spending commitment unveiled before the speech is made up of new money.

The Treasury has committed to almost 26bn of spending in a rush of announcements before Wednesday's budget and spending review. It is expected to contain no tax cuts and the chancellor has sought to reassure anxious Tory MPs that he is a fiscal Thatcherite at heart.