Rachel Reeves plans up to 11% Whitehall budget cuts

Chancellor Rachel Reeves is considering several financial reforms, including reducing the cash Isa tax-free limit to £4,000 annually, a move aimed at driving investment into stocks and shares Isas to promote UK economic growth. Meanwhile, her fiscal policies, notably the £40 billion in tax hikes, have faced criticism, with the proposed Whitehall budget cuts up to 11% further adding to the discontent. These cuts are part of efforts to manage high borrowing costs and avoid breaking fiscal rules, though they have sparked concerns of 'Austerity 2.0'. Hair salons are particularly affected by these economic measures, with increased taxes and minimum wage hikes threatening job sustainability in the industry. Additionally, economists argue that payments to cover Bank of England's bond-buying losses could trigger unnecessary public spending cuts, further straining economic stability. The ongoing fiscal challenges have led to significant public skepticism regarding the government's ability to stimulate economic growth effectively.