The Chancellor may have to cut public service spending even deeper than the previous Government had planned
‘If cuts are coming, and they are set to be even deeper than previously thought, where does that leave the Chancellor and the PM?’ When politicians start to repeat themselves more than usual, political journalists everywhere prick up our ears. Repeating a word or phrase usually spells trouble because it is the fallback position when everything else has failed: a mark of quiet desperation.
This leaves Labour with an impossible political reality to sell – having promised not to be the Tories, they may have to cut public service spending even deeper than the previous Government had planned. During the election campaign both Sir Keir Starmer and Reeves were asked repeatedly how they would deal with Conservative spending plans, which were set to leave unprotected departments facing austerity-level cuts.
In her first Budget, Reeves announced more money for public services and pay rises for workers who had repeatedly walked out on strike in the dying days of the last Tory administration. But her plans came with a sting in the tail. Much of the spending was front-loaded, leaving budgets for the years after 2025/26 looking much tighter.Without economic growth this would leave all departments scratching around for things to cut given the impact of rising inflation.
This has left people wondering when the promised “change” will come, and crucially when they’ll feel like their vote and faith in Labour will be rewarded.
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