Labour to announce ‘biggest cuts since austerity' | LBC

Rachel Reeves is expected to choose spending cuts over tax rises at next week's spring statement, as the Chancellor attempts to balance the books.

Reeves, who is set to deliver her statement next Wednesday, will make the economic announcements against the backdrop of a faltering economy and tighter headroom when it comes to the fiscal rules she set herself in October.

The chancellor's adjustments come in response to reduced growth forecasts by the Office for Budget Responsibility (ONS) and the Bank of England, with the government attempting to fill a notable black hole of between £15 billion and £20 billion in the public finances.

The growth figures, combined with higher-than-expected borrowing, were expected to put pressure on Ms Reeves to increase taxes or cut spending in order to meet the financial rules she set at the budget.

It is understood that changes to the tax regime are not expected next week.

Matthew Wright reacts to the expected announcements and reflects on a statement made by Keir Starmer in 2021, where he made a 'brilliant demolition job' of austerity.

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