Rachel Reeves

2024 - 7 - 29

Rachel Reeves Does the ‘Chancellor Shuffle’ in a £22bn Dance-off!

fiscal policy - Labour government - Rachel Reeves - spending cuts - Tory overspend - UK public finances

Chancellor Rachel Reeves is cutting winter fuel payments and infrastructure projects in response to a huge fiscal overspend. Ready to see how the Tories left the UK's wallets feeling a little lighter?

Chancellor Rachel Reeves has stepped into the spotlight, armed with a spending audit that reveals a staggering £21.9 billion overspend during the fiscal year. In a dramatic session in the House of Commons, she accused the previous Conservative government of playing hide and seek with the public finances, setting the stage for a series of painful spending cuts. The Chancellor's revelations have raised eyebrows and worries alike, as she announced the scrapping of important initiatives like the social care cap and certain winter fuel payments. It seems the Tories left the UK in quite the financial pickle, and Rachel Reeves isn't afraid to get her hands dirty in this fiscal kitchen.

These cuts, however, don’t just stop at welfare; they extend into crucial infrastructure projects, putting the brakes on hospital developments and transport schemes alike. The Tories' alleged cover-up of the fiscal shortfall has not just raised political tensions, but also led to forecasts of tax rises in the upcoming budget. As public sector departments brace for tighter settlements, the very essence of governance seems to be a balancing act between start-ups and cutbacks—a challenging period indeed for the Chancellor, who has described her decisions as “incredibly tough choices.”

But let's not forget the cheeky irony here! While Rachel Reeves is busy cutting funds and tightening belts, she is also championing realism in public finance. Economist Jonathan Portes, who has been observing the scene, argues that austerity can't be the only answer to the mess left behind. Could it be possible that the real answer lies in a mix of bold financial decisions and sustainable economic growth? Imagine a world where the government spent wisely without throwing a ton of cash at every problem; that would be a sight for sore eyes!

As we witness these drastic changes in fiscal policy, it’s important to keep an eye on the future landscape of British economics. With winter fuel payments projected to become means-tested, it's a shift that might affect those who need help the most—especially the better-off pensioners who may suddenly find their cozy winter holidays looking a bit chilly! Could Rachel Reeves be about to thaw the frost of austerity with some clever reallocation of financial resources? Only time will tell.

On a lighter note, did you know that the winter fuel allowance has supported millions in the UK during harsh winters, contributing to heating bills and the overall standard of living? And here’s a fun fact: when asked about her plans, Rachel Reeves said the government could revisit these cuts if the economic landscape improves. Will the Chancellor be our next winter fairy godmother, waving her wand and restoring lost funds? Now that would be a story worth reading!

Post cover
Image courtesy of "BBC News"

Rachel Reeves's spending audit at-a-glance (BBC News)

The chancellor has accused the Conservatives of hiding a £21.9bn government overspend this year, as she set out a series of spending cuts.

Post cover
Image courtesy of "The Guardian"

Rachel Reeves goes back to the future with her public finances ... (The Guardian)

The implications of that are clear. There are tax rises to come in the budget and tight settlements for Whitehall departments in a one-year spending settlement.

Post cover
Image courtesy of "The Guardian"

Rachel Reeves is pulling off a transparent political manoeuvre. But ... (The Guardian)

The Tories really did leave Britain in a fiscal hole. But austerity cannot be the remedy, writes economics and public policy professor Jonathan Portes.

Post cover
Image courtesy of "The Guardian"

Reeves scraps social care cap and some winter fuel payments to ... (The Guardian)

Hospital and road projects also targeted as chancellor accuses Tories of covering up scale of fiscal shortfall.

Post cover
Image courtesy of "The New York Times"

Chancellor Rachel Reeves Axes Projects After Reviewing $28 ... (The New York Times)

Rachel Reeves, the chancellor of the Exchequer, cut some infrastructure funding and pensions benefits, adding that more “difficult decisions” would come ...

Post cover
Image courtesy of "The Independent"

Rachel Reeves speech live: Chancellor axes winter fuel payments ... (The Independent)

In a speech in the House of Commons on Monday, the chancellor accused the previous Tory government of “covering up the true state of the public finances” as she ...

Post cover
Image courtesy of "Bloomberg"

Helen Chandler-Wilde: Rachel Reeves Offers More Realism (Bloomberg)

Hi there, it's Helen Chandler-Wilde, a Bloomberg UK journalist and editor of the Readout. Hope you enjoy today's newsletter.

Post cover
Image courtesy of "The Guardian"

What are Rachel Reeves' spending cuts and how do the sums add ... (The Guardian)

Chancellor unveiled series of cuts in response to what she called £22bn in unfunded commitments by Tories.

Post cover
Image courtesy of "Civil Service World"

Key spending commitments Rachel Reeves is scrapping to tackle ... (Civil Service World)

Winter fuel allowance payments to become means tested and hospital and transport projects scaled back, as Rachel Reeves lays out plan to tackle "£22bi...

Post cover
Image courtesy of "Financial Times"

Rachel Reeves unveils 'incredibly tough choices' to plug £22bn ... (Financial Times)

Chancellor cuts winter fuel payments for better-off pensioners as she paves the way for Budget tax rises.

Post cover
Image courtesy of "BBC News"

Winter fuel payments scrapped for those not on benefits, says ... (BBC News)

The chancellor also cuts several transport projects, saying Labour inherited a projected overspend of £22bn.

Post cover
Image courtesy of "The Guardian"

Rachel Reeves pursues political prize over £22bn financial hole (The Guardian)

Carefully honed message of Commons speech is having to make tricky decisions because Tories left us a mess.

Rachel Reeves Dumps Bad News Early to Clear Labour a Path to ... (Livemint)

Chancellor of the Exchequer Rachel Reeves made one thing clear in her audit of UK public spending on Monday. The new Labour government plans to front-load ...

Post cover
Image courtesy of "The Guardian"

The Guardian view on Rachel Reeves' statement: beyond the Tory ... (The Guardian)

Editorial: The chancellor was right to call out her predecessors' culpability for a disastrous inheritance. But Labour must be bolder.

Post cover
Image courtesy of "The Guardian"

Tuesday briefing: What Rachel Reeves' 'tough choices' mean for ... (The Guardian)

In today's newsletter: The new chancellor announced a series of public spending cuts, blaming the previous government while also looking to their playbook.

Post cover
Image courtesy of "The Independent"

Winter fuel payment latest: Rachel Reeves warns more difficult ... (The Independent)

Rachel Reeves speech live: Chancellor warns more difficult choices to come after axing winter fuel payment to plug '£22bn black hole'

The Health Foundation response to Rachel Reeves' spending audit (The Health Foundation)

Anita Charlesworth, the Health Foundation's Director of Research and REAL Centre, responds to the statement given by Chancellor Rachel Reeves.

Post cover
Image courtesy of "Financial Times"

Rachel Reeves goes big on Tory 'cover up', but Labour may fall into ... (Financial Times)

Abandoning infrastructure projects and relying on risky revenue raisers could hamper Labour's hopes to boost growth.

Post cover
Image courtesy of "The Guardian"

Hunt 'knowingly and deliberately' lied about finances, says Reeves (The Guardian)

Chancellor says her predecessor at No 11 covered up true state of the public finances but Hunt rejects claim.

Post cover
Image courtesy of "Sky News"

Rachel Reeves accuses Jeremy Hunt of lying about 'true state' of ... (Sky News)

Rachel Reeves stopped short of calling Jeremy Hunt a liar in the Commons yesterday while making her first major speech on the economy - but did not hold ...

Post cover
Image courtesy of "BBC News"

Rachel Reeves defends scrapping winter fuel payments for millions (BBC News)

The chancellor tells the BBC she "had to act" to "fix the mess" in public finances.

Chancellor Rachel Reeves sets Autumn Budget 2024 for October 30th (Contractor UK)

Chancellor Rachel Reeves says Autumn Budget 2024 - with potential ramifications for IT contractors - will be held on October 30th 2024. It will be the.

Post cover
Image courtesy of "The Guardian"

Reeves accuses Hunt of £22bn lie; nonsense, he says. What's the ... (The Guardian)

Shadow chancellor says successor confected story of 'black hole' to distract from tax rises, but things are not clearcut.

Post cover
Image courtesy of "The Institute for Government |"

Rachel Reeves must reset spending reviews to deliver on the ... (The Institute for Government |)

Rachel Reeves' statement highlighted short-term spending pressures – her spending review needs to "fix the foundations".

Post cover
Image courtesy of "The Guardian"

Some taxes will have to rise in 30 October budget, says Rachel ... (The Guardian)

Chancellor rules out raising national insurance, VAT or income tax but says 'difficult decisions to come' amid £22bn public finance shortfall.

Post cover
Image courtesy of "Financial Times"

Rachel Reeves says she will raise taxes at the Budget (Financial Times)

Chancellor embroiled in a row over how much Labour knew before the election about a hole in the public finances.

Post cover
Image courtesy of "BBC News"

Rachel Reeves: We'll have to increase taxes in the Budget (BBC News)

The chancellor says she will have to raise money through tax after claims of a £22bn hole in the public purse.

Post cover
Image courtesy of "The Independent"

Rachel Reeves admits she will raise taxes at the Budget (The Independent)

She said: “We had in our manifesto a commitment to fiscal rules to balance day-to-day spending through tax receipts, and by the end of the forecast period, to ...

Explore the last week