Rachel Reeves vows to crack down on Whitehall spending

Rachel Reeves promises to tackle waste and inefficiency

Rachel Reeves has pledged to take an "iron fist" approach to Whitehall spending, demanding her Cabinet colleagues prioritize cutting the size of the state. The Chancellor is determined to root out waste and inefficiency, ensuring that every pound of taxpayers' money undergoes a stringent "value for money" test.

Ministers tasked with finding savings of up to five per cent

As part of a review of spending up to 2029, ministers will be required to identify savings of up to five per cent. Any spending that does not align with Prime Minister Sir Keir Starmer's priorities, such as growth or improving the NHS, will be halted.

External experts to scrutinize spending plans

Banking chiefs will be brought in to examine the proposed spending plans, while academics will also be involved in studying the strategies. This move comes after departments were urged to find two per cent savings at the Budget, with indications from senior Cabinet minister Pat McFadden that further reductions are on the horizon.

Reeves refuses to take sides between EU and US

During a meeting with EU finance chiefs, Rachel Reeves made it clear that she will not be aligning herself with either Brussels or US President-elect Donald Trump. In a bid to strengthen ties with the EU post-Brexit, Reeves emphasized the importance of maintaining a neutral stance between the two entities.