Angela Rayner and Rachel Reeves clash over spending plans
A Treasury deadline for agreeing on departmental spending plans has passed, revealing a clash between Chancellor Rachel Reeves and Deputy Prime Minister Angela Rayner over political direction.
Rayner's Ministry of Housing, Communities and Local Government (MHCLG) is among departments yet to settle budget plans with the Treasury, resisting cuts and advocating for a more progressive, higher-tax approach.
Reeves is reportedly pushing for significant efficiency savings across departments, except for defense and health, leading to accusations of " austerity 2.0" from within the Labour party.
Rayner proposed alternative wealth taxes and benefit limitations in a leaked memo to Reeves, highlighting disagreements over fiscal strategy and priorities.
The stand-off occurs amid broader concerns among Labour MPs about potential austerity measures and pressure on Reeves due to strict borrowing rules and election promises.
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