Chancellor Rachel Reeves plans up to 11% budget cuts for government departments

Chancellor Rachel Reeves plans to cut government department budgets by up to 11% as she seeks to adhere to fiscal rules. This follows the loss of £9.9 billion in financial headroom due to high borrowing costs and lower growth forecasts. The Treasury has asked departments to prepare for a spending review in June. This comes amid pressure on Labour leader Sir Keir Starmer to increase defense spending to 2.5% of the economy, up from the current 2.3%. Reeves has faced criticism for her previous tax increases and decisions affecting pensioners. Recent polling indicates that many Britons feel less confident about economic growth under her leadership.