Reeves warns cabinet of £100bn budget shortfall over five years
The Guardian|October 16, 2024
Rachel Reeves has told the cabinet that the UK still faces a £100bn shortfall in the public finances over the next five years amid concerns that ministers are yet to grasp the full scale of the fiscal deficit ahead.
Pippa Crerar
Reeves warns cabinet of £100bn budget shortfall over five years

At a cabinet meeting, the chancellor said the £22bn gap this year - which the government has blamed on their poor economic inheritance from the Tories - would be a recurring cost each year of this parliament.

Cabinet ministers have pushed back against some of the cuts demanded of them, in particular to in-year capital spending, and Reeves's words will be interpreted as a signal that she will not back down.

"The chancellor highlighted the £22bn black hole inheritance from the previous government that needed to be filled just to keep public services standing still," a Labour spokesperson said.

"She said that the scale of inheritance meant there would have to be difficult decisions on spending, welfare, and tax- and that the longterm priority had to be unlocking private sector investment to drive economic growth. The chancellor told cabinet the budget would focus on putting the public finances on a strong footing and being honest with the British people about the scale of the challenge."

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