Rachel Reeves is planning swathes of public-sector cuts to balance the nation’s books, with billions of pounds more than expected to be slashed from spending.
Next week, the Chancellor will present her Spring Statement against the background of a struggling economy and with little flexibility under her financial constraints.
She is set to declare the most substantial spending reductions since the era of austerity measures began, instructing government agencies to reduce their budgets by up to 11 percent.
Today, the Treasury declared it will take over the spreadsheets utilized by other departments to 'enhance expenditure oversight'.
Darren Jones, who holds the position of chief secretary to the Treasury, stated that ministers will now have the capability to monitor in real-time which programs are exceeding their budgets or spending less than allocated, as well as identify those that are successfully delivering outcomes.
Although health, education, and defense budgets receive protection, other government departments must contend with significant real-term cuts in their operational funding.
Among those targeted are the Ministry of Justice – even with the courts' backlog and issues of prison overcrowding – and the Home Office .
It has been reported that several cabinet members expressed reservations regarding the proposed reductions during last week’s meeting, with notable dissent coming from Justice Secretary Shabana Mahmood and Energy Secretary Ed Miliband.
Home Secretary Yvette Cooper allegedly cautioned that the pressure might weaken the government's commitment to decrease crime and ensure the safety of the UK’s borders.
It is reported that Ms. Reeves needs to address a gap in public funds ranging from £15 billion to £20 billion; however, significant alterations in taxation are not anticipated.
A source from Whitehall informed The Guardian, "I am unsure how much longer we can continue to feign ignorance about it being austerity when in truth, we are reducing funding for essential public services like the police and prisons."
Labour MP Ian Byrne commented on the speculations regarding budget reductions by tweeting: "Insanity lies in repeatedly doing the same thing and anticipating varying outcomes. Austerity represents a deliberate political decision."
However, Treasury Minister Mr. Jones argued that it was incorrect to claim the government was moving toward austerity.
He stated: “We must push forward with this modernization and reform initiative—we aren’t merely aiming to cut expenditures indiscriminately.”
Departments will need to achieve savings by reducing their support staff.
The ministers aim for a reduced civil service size, enabling them to focus more resources on front-line services like increasing the number of teachers in classrooms and deploying additional police officers onto the streets.
However, Shadow Chancellor Mel Stride informed The Daily Mail yesterday: “Should the Chancellor be compelled to reduce financial support for public services during her emergency budget, it would stem from her own irresponsible decisions made at the previous Budget.”
'She stated that she wouldn’t alter her spending habits and intended to have just one financial event annually.'
‘Even more unkept pledges from a Labour government entirely over their heads.’
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