- A Treasury deadline for agreeing on departmental spending plans has passed, revealing a clash between Chancellor Rachel Reeves and Deputy Prime Minister Angela Rayner over political direction.
- Rayner's Ministry of Housing, Communities and Local Government (MHCLG) is among departments yet to settle budget plans with the Treasury, resisting cuts and advocating for a more progressive, higher-tax approach.
- Reeves is reportedly pushing for significant efficiency savings across departments, except for defense and health, leading to accusations of "austerity 2.0" from within the Labour party.
- Rayner proposed alternative wealth taxes and benefit limitations in a leaked memo to Reeves, highlighting disagreements over fiscal strategy and priorities.
- The stand-off occurs amid broader concerns among Labour MPs about potential austerity measures and pressure on Reeves due to strict borrowing rules and election promises.
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