Chancellor Rachel Reeves set to cut welfare spending by billions in upcoming Spring Budget

5 March 2025, 12:47 | Updated: 25 March 2025, 09:29

London, UK. Members of the new Labour cabinet in Downing Street London UK Rachel Reeves, chancellor of the Exchequer, Credit: Ian Davidson/Alamy Live News
The Chancellor's earmarked billions of pounds in spending cuts which will affect welfare and government departments. Picture: Alamy

By Flaminia Luck

Rachel Reeves is expected to cut billions of pounds from the welfare budget in her Spring Statement this month.

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The Treasury is due to submit a series of proposed cuts to the Office of Budget Responsibility, to meet the Chancellor's fiscal rules.

It is understood Reeves will set out a "four-point plan" involving planning reform, as well as making Whitehall more efficient.

A shadow cabinet minister has told LBC that the Conservatives will support "sensible" spending reductions.

However, some sources have criticised the plans describing them as "politically painful".

British Prime Minister Keir Starmer and Chancellor of the Exchequer Rachel Reeves
It's understood the Chancellor will set out a "four-point plan". Picture: Alamy

'Outrageous attack'

Steve Wright, the Fire Brigades Union general secretary, has warned Reeves not to adopt Tory welfare benefit cuts.

In a statement, he said: "Cutting billions of pounds from Welfare would be a return to the austerity of George Osborne and the Tories.

"It would be an outrageous attack on the poorest and most vulnerable.

"Many workers who are in receipt of income support and other benefits would suffer from any cutbacks.

"Food bank use and 'In Work' poverty remain widespread after nearly 15 years of Tory austerity.

"To make further cuts to the already derisory levels of welfare support would be to declare war on poverty-stricken families.

"Hard pressed families must not be made to pay the price of nearly a decade-and-a-half of Tory mismanagement of the economy.

"The Chancellor must use her Spring statement to tax the rich to properly fund public services and increase pay.

"Rachel Reeves must not become Labour's 'Austerity Chancellor'.

"The Fire Brigades Union will fiercely resist any cuts announced in the Spring Statement."

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Sources have described the plans as "politically painful"
Sources have described the plans as "politically painful". Picture: Getty