CHANCELLOR Rachel Reeves is set to announce a huge new programme of spending cuts as unemployment rises and anger at Labour’s assault on disability benefits mounts.

She will use her spring spending statement next week to unveil a fresh austerity programme as the government continues to rule out tax rises on the wealthy as an alternative.

Despair is turning to anger among backbench Labour MPs and trade unions at the government’s course, which is already seeing Labour plunge to record lows in the opinion polls.