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 residence of Angela Rener, the Ministry of Community and Local Government (MHCLG), are still not fixed on an agreement to review the expenditure due to unveiling on Wednesday, June 11.
Increasing pressure on Chancellor comes as a pre -advisor Lord Gym O’Nell Ms. Reeves has 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 Ms. Reeves with a low wild room.
And there is a possibility that another squeeze on public finance, “dubbed”Tapasya 2.0By critics, open the door for Nigel FarajImprovement to confiscate power “as Britain’s first distant government”.
Economic Cooperation and Development Organization (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 crisis is on whether it can increase defense spending, increased by 3 percent of GDP (GDP). 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”.
Already being accused of trying to bring “austerity 2.0” with Ms. Reeves – a reference to sweeping cuts brought by former Tory Chancellor George Osborn, it is understood that the increasing number of labor MPs and trade unions is now pushing to go for 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 review is becoming a proxy war to make strict efforts and stop the labor that facilitates an existential crisis – breathtaking collapse in support, and simply to try and distribute some of its manifesto 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 open the door to hand over 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, economist Lord O’Nell, who was brought as an advisor to Ms. Reeves, warned that they would have to borrow more for kickstart growth.
He urged him to invest in major projects, which he dubb “Big Positive MultiPliers”, such as Northern Powerhouse Rail or Small Modular Atomic Reactor (SMRS). 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 Hele failed to rule the tax growth to make Britain “war-taivar”, in the midst of concern that the government does not have enough funds to fund the schemes unveiled on Monday.
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.