Reeves to Cut Billions to Restore Budget Buffer: What to Watch

Chancellor of the Exchequer Rachel Reeves will blame global economic headwinds as she slashes UK government spending by billions of pounds, in the face of growing criticism from within her own Labour Party that she risks alienating voters.

The chancellor will have to cut about £10 billion ($13 billion) from day-to-day government spending, according to Bloomberg Economics estimates, when she delivers a midyear fiscal update in the House of Commons on Wednesday. The stakes couldn’t be higher for Reeves at the event, which will include updated forecasts and plans for £17 billion of extra borrowing needed since her budget in October.