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Chancellor Rachel Reeves will present plans to the British official prognostic for billions of pounds this week, with the focus on reducing the social bill in order to support the state’s weak public finances.
The £ 9.9 billion fiscal “head planes” reeves have left their own fiscal rules exhausted Through higher credit costs, the slow growth before a spring declaration on March 26 contributed to your problems.
The people who were informed about the process Household responsibility office intended to rebuild public finances and some said that it was more than £ 10 billion GBP than in their budget in October.
“You don’t need the OBR to tell you that the world has changed, that the loan costs all over the world have increased and that we have to take measures,” said one.
Reeves If it insists that the spring declaration will not be a “complete budgetary event” – it still intends to have a big budget per year in autumn – but the Chancellor is forced to take measures against public finances.
“We have to go on and faster in reform and expenses,” said an official about the thinking of Reeves. The Chancellor will also warn the country that it will have to spend more for defense in the future.
Reeves received the latest preliminary forecasts for OBR on Tuesday and will send political measures to the forecast this week, as he prepares his final prospects for public finances on March 26.
The Chancellor’s central task is to convince the OBR that the cuts they want to make, in particular to welfare programs, actually provide the savings that they claim.
Apart from reducing welfare, Pat McFadden creates plans to lower the central government’s expenditure in order to shape the state “agile”. Wes Streeting, health secretary, also works on a plan to increase NHS productivity.
In October, the forecasts of the OBR showed that Reeves had 9.9 billion GBP against its rule for the current budget until 2029-30 and left its “almost without Volgels room” according to the Institute for Financial Studies, a thought factory.
Liz Kendall, working and pension secretary, tries to convince the OBR that programs to get people from work and increase work to work because she tries to cut billions of pounds from the country’s welfare law by the end of the decade.
The secretary of the work and pension creates the basis for revising the performance system, which she will outline later this month, since Labor is trying not to be forced to force the expenditure for the government or tax increases.
The Department of Labor and Pensions In the past few weeks has published five “ad -hoc” actual evaluations in which the financial advantages of new programs are determined in order to bring the sick and disabilities to work Financial times registered on Monday.
Louise Murphy, Senior Economist at the memory factory of the Resolution Foundation, said the evaluations were clearly part of the efforts to evaluate the OBR to assess new state guidelines for the introduction of employment programs than in the past.
“It is really difficult to achieve large savings from the performance system,” she said. “The things that you can score very are usually really rough and essentially say that certain cohorts will no longer benefit from people.”
It is also expected that Reeves will sketch further savings before a complete review of public expenses in June because she tries to add up her budget amounts. Financial officers insist that they will not bend their fiscal rules because they fear that it would annoy the markets.
Although the Insider of the Ministry of Finance did not rule out any tax increases on March 26, they insist that Reeves wants to make major changes in their autumn budget.
