Rachel Reeves planning to slash Whitehall budgets by up to 11%

Deep spending cuts on the horizon

Rachel Reeves, the Chancellor, is gearing up to slash some Whitehall budgets by as much as 11% in an effort to make crucial savings and avoid breaking strict borrowing rules. This move comes as high borrowing costs have eroded the £9.9 billion headroom that Ms. Reeves had secured during the October Budget.

Accusations of "Austerity 2.0"

According to reports from Bloomberg, certain Cabinet ministers are anticipating a double-digit real-terms decrease in their budgets. While Ms. Reeves has all but ruled out tax hikes following criticism for last year's £40 billion increases, the impending squeeze is likely to invite comparisons to the era of "Austerity 2.0" and comes amidst growing scrutiny over her economic management.

Focus on welfare bill cuts

The anticipated significant cuts to the expanding welfare bill are expected to play a significant role in achieving these savings. Recent polling by Ipsos Mori indicates that half of Britons feel that Ms. Reeves' decisions have negatively impacted growth prospects, which is a key focus of Labour's policy agenda. Additionally, two-thirds of respondents disagreed with her decision to withdraw the winter fuel payment for ten million pensioners.