Chancellor Reeves Faces Economic Pressure, Considers Cuts

Facing economic challenges, UK Chancellor Rachel Reeves has indicated potential emergency spending cuts while maintaining a commitment to only one budget per year. Despite market turmoil and soaring borrowing costs, she plans to adhere to fiscal rules requiring covering everyday spending through taxes. Prime Minister Keir Starmer supports Reeves, rejecting calls for an emergency budget, though Downing Street has not ruled it out entirely. Reeves attributes the economic strain to global market factors rather than her budget, which has been criticized by Tories and some Labour members. The situation is compounded by recent fluctuations in the pound and government borrowing costs, although a slight reprieve came with a drop in inflation. Reeves has defended her recent trip to China, emphasizing its importance for UK investment and growth amid domestic financial instability.