Reeves and Starmer face cabinet revolt over spending review
Reeves could be forced to face down cabinet over ‘manifesto-breaking’ spending plans
- Chancellor Rachel Reeves faces a cabinet revolt over her spending review, with concerns that departmental cuts will lead to the abandonment of key manifesto promises.
- Reeves is being pushed to consider wealth taxes as an alternative to cuts, amid fears that austerity measures could boost Nigel Farage's Reform party.
- The government may U-turn on cancelling winter fuel payments and ending the two-child benefit cap, potentially costing Reeves up to £5bn.
- The OECD has downgraded its economic growth estimates for the UK, further limiting the chancellor's room for manoeuvre.
- Nato's call for member states to increase defence spending to 3.5 per cent of GDP adds further pressure, with the government struggling to explain how it will be funded.