Chancellor in UK to propose to reduce consumption to repair the exacerbation of public finances

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Chancellor Rachel Reeves will submit plans to the official forecast of Britain this week for billions of pounds of consumption reduction, with an emphasis on reducing the benefits of well -being to reduce poor public finances in the country.

9.9 billion pounds of fiscal “room” Reeves left against its own fiscal rules erased Greater costs of borrowing, while slow growth contributed to her problems on the eve of the spring statement on March 26.

People who are familiar with the procedure say Reeves will send “measures” Budgetary office She intends to renovate public finances, and some have said that more than £ 10 billion are worse than in her deciduous budget.

“You do not need an obes to tell you that the world has changed, that the costs of borrowing have increased all over the world and that we have to take measures,” one said.

Reeves It insists that the spring statement will not be a “full fiscal event” – still intends to have one large budget a year in the fall – but the chancellor is forced to take measures in public finances.

“We have to go further and faster on reform and consumption,” said one clerk with Reeves’ thinking. The chancellor will also warn the country that they will have to spend more on defense in the future.

On Tuesday, Reeves received the latest temporary forecasts of ORA, and this week will send a forecasted policy to the proponent because it prepares his final prospect for public finances on March 26.

The central task of the chancellor is to convince the obes that the cuts he intends to do, especially the social welfare programs, actually deliver the savings he claims.

In addition to reducing social welfare, the Minister of the Office of the Cabinet Pat McFadden makes plans to reduce the Central Government’s consumption so that the state is more “more agile”. WES Stroeting, a health minister, is also working on a plan to increase NHS productivity.

In October, the OR forecasts showed that Reeves had a 9.9 billion pound of head against her reign, so that the current budget would be in balance by 2029-30.-30, almost without a viring room, according to the Institute for Fiscal Studies, thoughts.

Liz Kendall, a secretary for work and pensions, seeks to convince the obvious that programs for removing people from the disease will increase the public purse from the job, as it tries to reduce billions of pounds from the Law on the Welcome of the Earth by the end of the decade.

The secretary for work and pensions lays the foundations for the overhaul of the convenience system that will indicate later this month, as the Labor is trying to avoid being forced to reduce the reduction in consumption in the Government or tax rise.

The work and pension department in recent weeks has published five “ad hoc” assessment of the influence that has set the financial advantages of new programs to get sick and disabled in business, Reported by the Financial Times on Monday.

Louise Murphy, a senior economist Think-tank of the resolution Foundation, said the estimates were obviously part of the effort to be achieved to evaluate new government policies for more generous employment programs than in the past.

“Making great savings from the system of fees is really difficult,” she said. “The things you can achieve are very rough, in essence, saying that certain groups of people will no longer benefit.”

Reeves is expected to also make further savings ahead of full public consumption examinations in June while trying to increase its budget sums. Treasury officials insist that they will not bend their fiscal rules in the midst of fear that they will upset markets.

Although the treasury insiders did not exclude any tax on March 26, they insist that Reeves wants to make major changes in their autumn budget.