Rachel Reeves slashing spending by £5bn in ‘austerity 2.0’

• Chancellor Rachel Reeves is set to announce Labour's spending plans on Wednesday, but analysis suggests she will need to make £5bn in cuts by 2028/29.
• The cuts are expected across unprotected departments like housing, policing, and local government, excluding NHS England, core schools budget, and defence, with Labour critics dubbing the plans “austerity 2.0”.
• The Home Office is expected to bear the brunt of spending cuts, potentially impacting police numbers despite pledges to cut crime.
• The analysis, commissioned by the Lib Dems, assumes Reeves will not hike taxes and was made before committing £1.25bn to restore winter fuel payments to pensioners.
• Lib Dems criticised the expected cuts, urging the Labour government to boost growth and avoid spending shortfalls, suggesting a UK-EU Customs Union to boost the economy.

IN FULL

Rachel Reeves forced ‘to make £5bn cuts’ to balance books after spending review