UK Politics

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Further benefits cuts planned as Rachel Reeves forced to find extra £1.6bn (www.theguardian.com)

submitted 1 month ago by RubberDuck@lemmy.world to c/uk_politics@feddit.uk

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[–] Emperor@feddit.uk 13 points 1 month ago

"Forced"? It is her own "rules" that are doing the forcing:

She is also expected to squeeze future Whitehall spending plans to ensure she is on target to meet her self-imposed fiscal rules, despite weaker OBR projections

If I went around doing something wildly unpopular because of a self-imposed people might, rightly, question my sanity.

Some in Labour had urged Reeves to flex her fiscal rules instead of outlining future spending cuts – but the Treasury fears that any sign of indiscipline would risk spooking bond markets and driving borrowing costs up further.

The experts I've heard interviewed on the radio say that is only if they increased borrowing, increasing taxes shouldn't do that.

At this point they have to decide if they want to piss off enough of the electorate that they won't get voted in again or if they want the Tory press to say "Labour are bad with the economy and don't stick to their promises" because their very wealthy mates had to cough up their fair share.