UK Cabinet Faces Tensions Over Looming Budget Cuts

Chancellor Rachel Reeves acknowledges the challenges ahead as Prime Minister Keir Starmer's government braces for a critical fiscal announcement.

Chancellor Rachel Reeves expressed sympathy for Cabinet colleagues facing backlash over proposed budget cuts ahead of next week's fiscal announcement.
The upcoming budget aims to address a significant 'black hole' in public finances, with plans to raise up to £40 billion through tax hikes and spending cuts.
Prime Minister Keir Starmer's administration is under pressure, with several senior ministers voicing concerns about the impact of spending reductions on their departments.
Despite internal disagreements, the government has pledged not to increase VAT, income tax, and national insurance, adhering to Labour's manifesto promises.
Economic forecasts show mixed signals, with higher-than-expected government borrowing but improved GDP growth projections for 2024.