Chancellor Rachel Reeves faces backlash over £5bn welfare cuts amid Cabinet turmoil

Chancellor Rachel Reeves is under pressure as she prepares for a critical Spring Statement amid deteriorating public finances and rising costs. With the Office for Budget Responsibility expected to cut growth forecasts, Reeves faces a fiscal gap of between £15 billion and £20 billion, prompting concerns about significant spending cuts, particularly after recent welfare cuts faced backlash from Labour MPs and charities. Despite ruling out further tax increases and rejecting calls to adjust her fiscal rules, Reeves must navigate a challenging landscape, exacerbated by global instability and domestic economic pressures. The anticipated cuts, including reductions in winter fuel payments and benefits for the vulnerable, have sparked dissent within the party, although some government insiders express a sense of relief that public dissent has not escalated. As she approaches this pivotal moment, Reeves acknowledges the scrutiny that comes with her role, emphasizing the weight of the decisions she must make. The overall sentiment suggests a challenging path ahead for Reeves, with potential ramifications for her leadership and party unity.