Reeves and Starmer face cabinet revolt over spending review
Reeves faces cabinet revolt over fears manifesto promises will be ditched
- Chancellor Rachel Reeves faces a cabinet revolt over her spending review, with concerns that departmental cuts will lead to the abandonment of key manifesto promises.
- Reeves is being pushed to consider wealth taxes instead of cuts, amid Fears that austerity measures could pave the way for Nigel Farage's Reform party to gain power.
- The government may U-turn on cancelling winter fuel payments and ending the two-child benefit cap, potentially costing Reeves up to £5bn.
- Economist Lord Jim O’Neill has advised Reeves to borrow more for major projects to stimulate growth, following a downgrade in the UK's economic growth forecast by the OECD.
- Defence Secretary John Healey has not ruled out tax rises to fund increased defence spending, as NATO calls for member states to raise their defence spending to 3.5 per cent of GDP.