The Finance Minister for the United Kingdom, Rachel Reeves, announced on Sunday that she intends to reduce government expenses by 15% in four years, despite the country’s financial difficulties.
Prior to her pivotal Spring Statement on Wednesday, when she is anticipated to outline billions of pounds in expenditure cuts across numerous government agencies, she made these remarks.
“We are, by the end of this parliament, committing that we will cut the costs of running government by 15 per cent,” she said to the BBC.
The objective would result in yearly savings of £2.2 billion ($2.8 billion) for the more than 500,000-person British civil sector, according to the broadcaster.
Reeves noted that there may be a 10,000-person reduction in staff but stated that it would be up to the various departments to determine how many civil servants would lose their jobs.
“I would rather have people working on the front line in our schools and our hospitals, in our police, rather than in back-office jobs,” she stated on Sky News.
Additionally, Reeves stated that when she presents her financial update on Wednesday, she will adhere to her fiscal guidelines.
Their goal is to reduce debt as a percentage of GDP by 2029–2030 and refrain from borrowing to pay for daily expenses.
She also promised not to raise taxes, thus following the regulations could result in certain departments cutting back on spending.
Since taking office in July of last year, the Labour administration has been unable to turn around Britain’s economy, a challenge made more difficult by Donald Trump’s return to the White House.
“The world has changed,” Reeves revealed to Sky.
“We can all see that before our eyes, and governments are not inactive in that –- we’ll respond to the change and continue to meet our fiscal rules.”
Reeves had little leeway to comply with her regulations because public sector net borrowing, or the shortfall between spending and tax receipts, increased last month, according to official figures issued on Friday.
The limitations are intended to guarantee that the government’s expenditure plans continue to be credible in the eyes of the financial markets.
The government announced controversial cuts to disability assistance payments on Tuesday, with the goal of saving almost £5 billion a year by the end of the decade.
In every year of this parliament, which ends in 2029, Reeves emphasised on Sunday that “real-terms” growth in total public spending would continue.
