Skip to main content
Work with the NEU
The austerity illusion: unmasking the Labour government’s betrayal
Instead of responding to changed circumstances by adjusting policy, Reeves is using fiscal ‘rules’ as an excuse to force government departments to make even deeper cuts than she had already flagged, says CLAUDIA WEBBE
Chancellor of the Exchequer Rachel Reeves at the Confederation of British Industry (CBI) conference at the QEII Centre, London, November 25, 2024

RACHEL REEVES is planning to cut public services even more deeply than she had already trailed, according to government officials briefing the press, supposedly a response to the soaring cost of borrowing and the recent fall in the value of the pound.

Reeves has ruled out any increase in government borrowing or tax increases and claims the cuts are necessary because her “fiscal rules” are “non-negotiable” and a “red line” amid concerns that she will be unable to meet the arbitrary debt and spending targets she set herself as Chancellor.

Speaking on Reeves’s behalf, a Treasury spokesperson was explicit: “If we have to choose between raising taxes and cutting spending, we will cut spending.”

The 95th Anniversary Appeal
Support the Morning Star
You have reached the free limit.
Subscribe to continue reading.
Similar stories
Chancellor of the Exchequer Rachel Reeves after she gave her keynote speech during the Labour Party Conference at the ACC Liverpool, September 29, 2025
Editorial: / 16 October 2025
16 October 2025
Chancellor of the Exchequer Rachel Reeves speaks with the media at the Rolls-Royce factory in Derby, May 15, 2025
Economy / 22 May 2025
22 May 2025
Chancellor of the Exchequer Rachel Reeves speaks during a vi
Britain / 8 April 2025
8 April 2025
Chancellor Rachel Reeves gives a speech on economic growth a
Britain / 23 March 2025
23 March 2025
‘If the last government taught us anything, it’s that you can’t cut your way to growth,’ unions and campaigners tell Reeves