Rachel Reeves has admitted she was "really angry" after prisoners were seen popping champagne following their early release from jail under Labour's plans to curb overcrowding.
Inmates who were part of the first 1,750 early-release criminals were snapped celebrating outside a number of prisons across the UK, with GB News even witnessing a group of people smoking cannabis while an unmarked police car watched on.
Reeves joined the growing number of MPs to voice concern about the situation witnessed yesterday.
However, the Chancellor appeared more keen to take aim at the previous Tory Government over its handling of prisons.
Rachel Reeves admits she was FURIOUS at prisoners popping champagne after early releaseGB NEWS/PA
Speaking to GB News' political editor Christopher Hope at Silverstone UTC, the Chancellor said: "It makes me really angry.
"It makes me really angry the inheritance that the previous Government left whether its the £22billion blackhole in public finances or failing to build the prison places that are necessary to keep criminals locked up.
"We will make sure that we those prison places are available but we have had to make the tough decisions to clear up the awful mess the previous Government left for us."
Labour's plan to deal with overcrowding was announced by Justice Secretary Shabana Mahmood in July.
Mahmood yesterday suggested inmates who risk being left homeless could be temporarily housed in taxpayer-funded hotels amid concern about spaces in bail hostels and other community accommodation typically used for offenders.
Labour's plan is to free up 5,500 beds by cutting the minimum limit from 50 per cent to 40 per cent for offenders serving sentences of fewer than five years.
The scheme will expand to include offenders serving fixed sentences of more than five years on October 22.
However, an 18-year-old killer convicted of manslaughter over the death of a teenage boy in a machete attack was among those to benefit from Sir Keir Starmer's early release scheme.
Lawson Natty was judged eligible for the scheme because he was sentenced to two years and eight months, below the four-year threshold above which he would have been excluded.
Actor Jason Hoganson, 53, was also freed early from jail on Tuesday after being sentenced to 18 months in jail for assaulting his former girlfriend in the street.
During Reeves' sit-down interview with GB News, the Chancellor also addressed the UK's economy flatlining and yesterday's decision to push ahead with scrapping Winter Fuel Payments for 10 million pensioners.