THE Chancellor is planning to slash some Whitehall budgets by up to 11 per cent as she scrambles to make savings.
Rachel Reeves is preparing to unleash deep spending cuts in the spring to avoid breaking her strict borrowing rules.
Rachel Reeves is planning to slash some Whitehall budgets by up to 11 per cent[/caption]
Some Cabinet ministers have been braced for a double-digit real-terms reduction in their budgets, according to Bloomberg.
High borrowing costs have wiped out the £9.9billion headroom Ms Reeves raised at the October Budget.
She has already all-but ruled out tax rises after suffering bruising attacks for her £40billion hikes at last year’s Budget.
But the squeeze will open Ms Reeves up to accusations of “Austerity 2.0” and comes as she faces fresh flak over her handling of the economy.
Big cuts to the ballooning welfare bill are expected to make up a large part of the savings.
An Ipsos Mori poll yesterday showed half of Brits believe Ms Reeves’ decisions had dampened prospects for growth — Labour’s flagship mission.
And two thirds disagreed with her withdrawing the winter fuel payment for ten million pensioners.
