UK (Parliament Politics Magazine) – Chancellor Rachel Reeves defends deep spending cuts, citing global uncertainty and fiscal responsibility, but critics warn of impacts on struggling families.
As reported by The Guardian, Ms. Reeves justified deep welfare and public spending cuts, pointing to “global uncertainty” as she aimed to fill the fiscal gap fueled by high borrowing costs and slow growth.
What did Rachel Reeves announce about the UK’s growth forecast?
Addressing the House of Commons, the Chancellor stated that the UK’s projected economic growth had been slashed from 2% to 1% by the Treasury watchdog. The watchdog warned that failing to act would derail her efforts to stabilize public finances.
In a firm address, she outlined steps in her spring statement to convert an anticipated £4.1bn shortfall in public funds into a £9.9bn surplus over five years. She assured that this would fully restore the financial buffer under her self-imposed fiscal guidelines.
Rachel Reeve’s remarks about fiscal rules and economic growth
Responding to calls from cabinet ministers and Labour backbenchers to reconsider fiscal policies, Ms. Reeves insisted they were “non-negotiable” and “an embodiment of this government’s unwavering commitment to bring stability to our economy.”
The chancellor argued that scrapping the fiscal rules would be as irresponsible as the economic turmoil triggered by Liz Truss’s 2022 mini-budget.
Ms Reeves defended the cuts, stating that they would be mitigated by significant long-term investments. She highlighted key areas such as large-scale homebuilding and enhanced defence spending.
The chancellor told MPs,
“The responsible choice is to reduce our levels of debt and borrowing in the years ahead so we can spend more on the priorities of working people, and that is exactly what this government will do.”
Despite the potential for internal tensions, Ms Reeves insisted on pressing ahead with further benefit cuts, calling them a “final adjustment” after the OBR’s eleventh-hour analysis.
The chancellor revealed a £1bn support package to assist job seekers, alongside measures projected to save £3.4bn in total.
She confirmed a reduction in Whitehall budgets, including a cut in the civil service workforce, a move anticipated to generate £3.5bn within six years.
What did Rachel Reeves announce about defence and infrastructure funding?
The chancellor announced a rise in defence spending. She also revealed an annual £2bn boost for long-term infrastructure projects, exceeding allocations in the autumn budget.
As economic uncertainty grew, she made a pointed distinction from the Conservatives, stating that cutting long-term projects would be a mistake. She stated,
“[In the past] that hindered growth and caused school roofs to literally crumble. That was the wrong choice; it was the irresponsible choice; it was the Tory choice.”
What did Rachel Reeves say about the government’s housing plans?
According to the chancellor, the OBR evaluated the government’s planning changes, including the amendments to housing targets introduced by Angela Rayner in December. The findings estimated a 0.2% GDP increase and over £6bn in revenue gains by 2029-30.
She highlighted that OBR estimates suggest 1.3 million new homes could be constructed by the end of this parliament. The government’s official goal remains 1.5 million homes within the same timeframe.
How many families will be affected by the government’s welfare cuts?
Official analysis reveals that more than 3 million families will be impacted by the government’s extensive welfare cuts, with a warning that an extra 250,000 people could face relative poverty by 2029-30.
The findings have raised concerns from disability groups and are expected to intensify worries within Labour ranks, with dozens of MPs raising the prospect of a potential revolt when the measures come up for a vote later this year.
What did Charles Gillies say about the chancellor’s benefits cuts?
Charles Gillies, a senior policy officer at the Multiple Sclerosis Society, stated,
“The chancellor has chosen to double down on harmful benefits cuts, despite warnings this approach will push more disabled people into poverty and worsen people’s health.”
He added,
“People are wondering how they will continue to cover their basic living expenses and the extra costs of their disability, like visits from carers to help with things like washing, cooking and going to the toilet. The government has a moral obligation to scrap these cuts before the real damage is done.”
What did Alison Garnham say about stealth social security cuts?
Alison Garnham, CEO of the Child Poverty Action Group, stated,
“Stealth social security cuts bring neither stability nor security to struggling families and will push child poverty even higher. Growth and better living standards are not achieved by taking money from families with the least.”