British Chancellor Rachel Reeves Rules Out ’Tax and Spend’ Approach

By Staff, Agencies

British Chancellor Rachel Reeves has ruled out adopting "tax and spend" policies, making it clear that she will not significantly raise taxes or increase government budgets in her upcoming Spring Statement.

Speaking in a BBC documentary, The Making of a Chancellor, Reeves emphasized that the government cannot afford large-scale spending increases, unlike previous Labor administrations.

She is expected to announce departmental cuts on Wednesday, with additional defense funding coming at the expense of the aid budget.

Reeves faces mounting pressure due to higher-than-expected government borrowing and a likely downgrade in economic growth forecasts.

Meanwhile, recent welfare reforms aim to cut £5 billion annually by 2030, affecting disability benefits and support for young Universal Credit claimants.

Despite calls from senior Labor figures, including Lord Blunkett, to ease self-imposed fiscal constraints, Reeves remains committed to strict spending rules.

However, critics argue that her economic approach is stifling growth, with Shadow Chancellor Mel Stride warning of an "anti-business budget" that could worsen economic conditions.

Reeves defended her policies, asserting that all public spending decisions undergo rigorous scrutiny, though she acknowledged the challenges of personal criticism in politics.