UK Finance Minister Rachel Reeves announces 15% Government cost reduction plan

UK Finance Minister Rachel Reeves has announced plans to cut government expenses by 15% within four years, aiming to save £2.2 billion annually.

Speaking ahead of her Spring Statement on Wednesday, she emphasized reducing the civil service workforce while prioritizing frontline services in education, healthcare, and policing.

Reeves noted that up to 10,000 jobs might be affected, though each department will decide the extent of staff reductions. She also reiterated her commitment to reducing debt as a percentage of GDP by 2029–2030 while avoiding tax hikes.

The Labour government, facing economic challenges since taking office in July, is under pressure to maintain fiscal discipline. Last week, controversial cuts to disability assistance payments were announced, projected to save nearly £5 billion annually by the end of the decade.

Despite the cuts, Reeves assured that overall public spending would continue to grow in real terms throughout this parliamentary term, which ends in 2029.