Skip to main content
The austerity illusion: unmasking the Labour government’s betrayal
Instead of responding to changed circumstances by adjusting policy, Reeves is using fiscal ‘rules’ as an excuse to force government departments to make even deeper cuts than she had already flagged, says CLAUDIA WEBBE
Chancellor of the Exchequer Rachel Reeves at the Confederation of British Industry (CBI) conference at the QEII Centre, London. Picture date: Monday November 25, 2024

RACHEL REEVES is planning to cut public services even more deeply than she had already trailed, according to government officials briefing the press, supposedly a response to the soaring cost of borrowing and the recent fall in the value of the pound.

Reeves has ruled out any increase in government borrowing or tax increases and claims the cuts are necessary because her “fiscal rules” are “non-negotiable” and a “red line” amid concerns that she will be unable to meet the arbitrary debt and spending targets she set herself as Chancellor.

Speaking on Reeves’s behalf, a Treasury spokesperson was explicit: “If we have to choose between raising taxes and cutting spending, we will cut spending.”

Support the Morning Star
You have reached the free limit.
Subscribe to continue reading.
Morning Star call for advertising
More from this author
DEFIANT: Mexican President Claudia Sheinbaum
Features / 10 March 2025
10 March 2025
With trade wars backfiring, allies resisting military demands, and approval ratings plummeting, Trump’s dangerous pursuit of colonial ambitions threatens to end the ‘American century’ with catastrophic conflict, warns CLAUDIA WEBBE
DAMAGING AGENDA: Work and Pensions Secretary Liz Kendall
Features / 24 February 2025
24 February 2025
Labour is deliberately continuing Tory policies that cost us £38 billion more than they save while driving illness rates higher — despite the evidence that previous sanctions doubled suicide attempts, writes CLAUDIA WEBBE
Wes Streeting
Features / 10 February 2025
10 February 2025
The Labour Party, once the proud architect of our health service, has become its undertaker, argues CLAUDIA WEBBE
HEAVY HANDED: Former Labour leader Jeremy Corbyn and Khalid
Features / 29 January 2025
29 January 2025
What we are seeing now in the policing of Gaza protests is a manifestation of an authoritarianism that the government intends to inflict on our country, argues CLAUDIA WEBBE
Similar stories
Protesters demonstrate as Chancellor Rachel Reeves is about
Britain / 26 March 2025
26 March 2025
Labour accused of ‘balancing the books off the backs of the poor’ in spring spending statement
Chancellor of the Exchequer Rachel Reeves at the Confederati
Britain / 22 January 2025
22 January 2025
Chancellor of the Exchequer Rachel Reeves makes her keynote
Britain / 16 October 2024
16 October 2024
Chancellor of the Exchequer Rachel Reeves speaks during the
Editorial: / 8 October 2024
8 October 2024