Rachel Reeves’ Next Move Set to Spark Fury and Division Within Her Own Party
Rachel Reeves’ plans to cut welfare benefits are set to spark outrage within Labour. While the Chancellor has already angered businesses, farmers, and pensioners, the deepening economic crisis in Britain is forcing her to make painful cuts to benefits, a move that’s likely to bring frustration and anger to many.
Labour MPs are bracing for the fallout. As they receive letters from desperate constituents questioning why their support is being slashed, many will be wondering, “What’s the point of being in power if we can’t protect those who need it the most?” MPs with slim majorities will be particularly worried that this move will make them vulnerable at the next election, with some fearing that the fury aimed at Reeves could cost them their seats.
On top of this, the Government has been forced to raid the foreign aid budget to fund the increased spending on defence, which is a difficult pill to swallow for many Labour members. But with a lack of growth, this is the grim reality they face in today’s Britain, according to the Express.
Reeves is also facing the very real risk of breaking her own fiscal rules, as her £9.9 billion “headroom” is fast disappearing due to the worsening state of public finances. To balance the books, she’s been forced to consider billions of pounds in cuts, and it’s no surprise that the welfare budget is in her sights.
The number of people on health-related benefits has surged by 1.2 million since February 2020, costing the taxpayer nearly £65 billion. While there’s a strong case for helping people to work, the current economic pressures mean Labour is being forced to make cuts to avoid a collapse in market confidence that could have dire consequences for the UK.
For now, Starmer and Reeves should focus on not doing anything that could harm growth any further. But with the jobs tax hike set to kick in, employers and households are preparing for more pain. Companies will pass higher costs onto customers, inflation will rise, and millions of Britons will feel worse off. Businesses, too, are struggling, with nearly 80% reporting low or very low confidence.
The knock-on effects of Trump’s trade tariffs are also making matters worse. With costs rising across the board, the Chancellor must find ways to lift the burden from families and businesses. The UK needs to make the most of its post-Brexit freedoms to give entrepreneurs a chance to thrive.
But if growth doesn’t return, we could see even more cuts to the welfare state, and while slicing foreign aid and making tough decisions on benefits might be accepted by some, there would be uproar if state pension or NHS access were to be slashed in future years. The future of the UK’s public services and living standards is looking increasingly uncertain.
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