In her spring budget update, Chancellor of the Exchequer Rachel Reeves announced £14 billion (approximately €16.7 billion) in spending cuts to stabilize public finances amid sluggish economic growth and rising borrowing costs. The announcement has sparked tensions within the Labour Party.
Rachel Reeves outlined the savings plan during her “spring statement,” which serves as an update to the autumn budget. Addressing members of Parliament, Reeves emphasized the need to adapt to a changing global landscape. “We must acknowledge that the world is shifting before our eyes,” Reeves stated. Without directly mentioning Donald Trump, she referred to an increasingly “uncertain era” with “more unstable trade relations.”
One of the most controversial measures involves cutting £5 billion (about €6 billion) annually from disability and incapacity benefits, affecting hundreds of thousands of people. Critics have accused the government of unfairly targeting vulnerable populations to reduce the deficit.
The decision to cut social benefits has drawn backlash from within the Labour Party and beyond. Some Labour MPs have voiced concern that the government is shifting the financial burden onto low-income and disabled citizens. Opposition leaders argue that these cuts will exacerbate social inequality and increase hardship for those already struggling.
Read also: Hybrid Work: In Italy and Europe It’s a Growing Trend. And Companies Are Starting to Understand It
Economic analysts suggest that the budget cuts are necessary to address the growing fiscal deficit, but they warn that reducing social benefits could lead to higher social tensions and increased demand for public services. Rachel Reeves defended the measures, arguing that they are essential for long-term financial stability. “Difficult decisions are necessary to secure a sustainable future,” she said.
The spring budget also includes measures to stimulate economic growth, including targeted investments in infrastructure and technology. However, the cuts to social programs have overshadowed these initiatives, raising concerns about the government’s priorities.
This budget update marks one of the most significant policy shifts under Reeves’s leadership, reflecting the growing pressure to balance public spending amid global economic uncertainty. The political fallout from these cuts is expected to dominate parliamentary debates in the coming months, with Labour’s internal unity facing a serious test.
This article is originally published on lefigaro.fr
