Bridget Phillipson said that there will be "no return to austerity" but that "we do, all of us have to make some really tough choices because of the inheritance... given to us by the Conservatives."
Concerns about the spending cuts have been raised across different Government departments, the PA news agency understands.
It was reported on Wednesday evening by the Times newspaper that several senior ministers voiced concerns at the Cabinet meeting on Tuesday about proposals to reduce some departments' spending by as much as 20%, and have since followed up with letters to Sir Keir Starmer.
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