Reeves denies austerity as Labour plans 15% Civil Service cuts

Chancellor Rachel Reeves is facing backlash over £5 billion in welfare cuts as she prepares for her spring statement, which aims to balance the budget amid rising debt interest costs and economic uncertainties. Despite Labour's pre-election tax pledges, Reeves is expected to announce further spending cuts while avoiding broad-based tax increases. The situation is exacerbated by predictions from the Joseph Rowntree Foundation indicating a potential decline in living standards, which Reeves has firmly rejected, asserting confidence in economic improvements. She emphasizes recent increases in the national living wage and the impact of interest rate cuts on mortgage affordability as signs of economic stability. However, internal dissent within the Labour party is growing, with some MPs urging a reconsideration of fiscal rules to accommodate increased defense spending. As Reeves continues to navigate these challenges, she remains committed to delivering on her election promises and maintaining fiscal discipline.