Rachel Reeves to order ministers to make major savings amid defence cuts

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Rachel Reeves to order ministers to make major savings amid defence cuts
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The Ministry of Defence and Department for Transport are among the Whitehall departments which have already begun the process of cutting costs

Ministers will be ordered to come up with ways to make major savings in the coming months as part of Rachel Reeves’s Budget,and Department for Transport are among the Whitehall departments which have already begun the process of cutting costs in a bid to save as much money as possible.

The formal review of departmental costs is likely to involve a broader look at all possible savings, ahead of a total reset of Whitehall budgets taking effect in April next year. In a letter sent to defence contractors this week, officials asked for urgent ideas on what projects could be delayed or cancelled to ease pressure on military budgets, giving them 36 hours to respond.

She told Politico: “We’ve got work to do – particularly on balancing day-to-day expenditures through receipts.” It is unclear whether she will tweak the borrowing rules in order to free up billions more pounds, as well as announcing spending cuts and tax rises.

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