Chancellor Rachel Reeves plans significant cuts to UK's welfare budget to restore financial stability

Chancellor Rachel Reeves plans to cut billions from the welfare budget to balance the UK's finances after recent market turmoil. This move indicates deeper cuts than previously anticipated, as she aims to reassure investors without increasing taxes on businesses. Reeves has committed to fiscal rules that require day-to-day spending to be funded by tax receipts. Labour has already proposed a £1.3 billion annual reduction in sickness and disability benefits, with further measures expected in the spring. Ministers are conducting a detailed spending review to identify savings, but some departments are reportedly struggling to make additional cuts. Concerns about rising borrowing costs and investor confidence have intensified, leading to speculation about Reeves' future as Chancellor.