Rachel Reeves is facing a cabinet rebellion amid review of its expenses Apprehension departmental cuts Major manifesto will lead to digging promises.
Which is being described as a “proxy war”, is facing a push to consider the Chancellor Tax on rich Next week instead of deduction before underlining your government spending schemes.
The room for maneuver is more banned by an expectation that the government will U-turn on cancellation Winter fuel payment For millions of pensioners, as well as finished Two-child profit hatsWhich can spend MS Reves as £ 5BN.
The Row reports that the major departments, including the home office of Yett Cooper and the houses of Angela Rener, the Ministry of the Local Government, have not just gone to an agreement to review the expenditure due to unveiling on Wednesday 11 June.
There were some good news with the reports that education secretary Bridget Philipson had agreed to the envelope of his department’s expenses with a week to leave. But despite the holdouts Treasury, the informal deadline of the previous weekend sets to agree.
Increasing pressure on Chancellor comes as a pre -Treasury Advisor Gym o’Neel Ms. Reeves told that she needs to borrow more for key projects for kickstart growth, as the latest forecasts have seen another downgrade for the UK economy, leaving the Chancellor with a low wiggle room.
And there is a possibility that the door will open for another squeeze on public finance Nigel FarajLocal transformation party to confiscate power. Tuesday night, Many times Informed on Letter sent by police chiefs To Sir Kir, warnings of the “far -reaching consequences” of cuts to forces.
OECD On Tuesday this year, its estimate for the UK’s economic growth was 1.3 percent, 1.4 percent and 1 percent, below 1.2 percent in 2026.
Meanwhile, the government’s pledge to increase defense spending up to 3 percent of GDP has become complex. NATO decision To explain the member states including the UK, to increase it even more to 3.5 percent.
A senior labor source told Independent That Chancellor’s decision In the next week, “many will look at the end of the promise of the manifesto, as is really saving”.
Ms. Reeves is already being accused of trying to “” by critics.Tapasya 2.0“, It is understood that the increasing number of labor MPs and trade unions is now pushing to introduce money tax instead.
The view was depicted in a leaked memo of Ms. Rener, in which the Deputy Prime Minister proposed eight separate money taxes, including increase in dividend tax rates for high -earnings and targets property traders who use corporate structures to avoid stamp duty.
A senior labor source told Independent: “I think the expenditure reviews are becoming a proxy war to make strict efforts and stop the labor that facilitates a crisis of existence – breathtaking collapse in support, and [the plan for the party is to] Just try and distribute some of its manifestos so that ordinary voters can see and feel that they have. ,
He said: “I can’t see how Rahel Reeves lives.”
With the apprehensions, which means that the border control, policing, housing and social care will have to be returned to promises, the source warned: “I think the spending reviews will actually end the number of several manifestations that are really delivery.”
Strict rules on borrowings of Ms. Reeves and Income Tax, VAT or employee refusal to increase national insurance, there are concerns within labor that “fiscal rules are politically destroying labor and on the distribution of their agenda”.
But the biggest fear is that a new wave of penance will hand over to Nigel Faraj and improve the power of the UK.
The senior source said: “People are becoming real and becoming vocal. People are feeling that the improvement danger is not just a crazy blip. It may be the inheritance of this labor government that they enter the first distant government in the history of Britain. It cannot be allowed to happen.”
Meanwhile, Lord O’Neill has warned that he will have to borrow more for kickstart growth.
The economist urged him to invest in major projects, which he dubbing “Big positive multiplier”, such as Northern Powerhouse rail or small modular nuclear reactors.
Investment is expected to be the subject of a major speech by Chancellor tomorrow as she tries to achieve the initiative again.
However, the government is still struggling to explain how it is planning to pay for defense vows. Its strategic review On Monday.
By 2034, 3 percent of GDP on defense has been downgramed for “an ambition”, but now NATO’s new general secretary Mark Rute is set to make a proposal for all members for the next summit of the defense block.
A senior internal source said that Britain would “sign up” without any doubt, but was unable to say where the money would come from.
On Tuesday, Defense Secretary John Hella failed to rule the tax growth to make Britain “war-taivar”.
He said that the government would determine how we would pay for future growth in future “When Britain at the risk of promoting its military funding by 3 percent.
Mr. Hele said that he is “100 percent confidence”, the target would be met – but he struggled to say that after warning by economists how it would be paid that significant tax increase would be required.
