Under-siege Rachel Reeves to slash billions from Britain’s bloated welfare budget in desperate bid to balance books
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UNDER-fire Rachel Reeves has signalled painful spending cuts are on the way as she vowed to “take action” to balance the books. The Chancellor will slash billions from the welfare budget after market turmoil wreaked havoc on the nation’s finances.
![[Rachel Reeves, British Chancellor of the Exchequer, at a press conference.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/epa11818121-british-chancellor-exchequer-rachel-963005249_cb1191.jpg?strip=all&w=960)
But she faces a growing Cabinet revolt as government insiders warn that some departments are already “cut to the bone” and will struggle to make more savings. Ms Reeves is also facing a barrage of criticism from within government ranks for being too gloomy ahead of the Budget, putting investors off and sending the economy spiralling into a doom loop.
After a press conference in Beijing, Ms Reeves told journalists: “I have been really clear that our fiscal rules are non-negotiable — that we will pay for day-to-day spending through tax receipts and we will get debt down as a share of GDP. “Those fiscal rules that I set out in the Budget in October are non-negotiable and we will take actions to ensure we meet them.”.
Her comments signal much deeper public sector cuts than previously expected — after she promised business she will not clobber them with more tax hikes. The under-fire Treasury chief spoke out after days of market turmoil sparked fears of a 1970s-style stagflation crisis.
Labour has already promised to slash £1.3billion from the sickness and disability benefits bill every year — with more details coming in the spring. And the Sun on Sunday has been told the Treasury wants to go further — with more measures to get people back to work.
