Official budget documents and government announcements

Chancellor Rachel Reeves Announces Austerity Measures to Address £22 Billion Overspend, Budget on October 30

Jul 29, 2024, 02:55 PM

UK Chancellor Rachel Reeves has announced a series of austerity measures to address a £22 billion overspend inherited from the previous Conservative government. Key actions include means-testing winter fuel payments, which will now only be available to those on pension credit or other benefits, saving £1.4 billion. Reeves also confirmed that her first budget will be held on October 30, during which further 'difficult decisions' on spending, welfare, and tax will be made. She emphasized that there will be no increases in national insurance, VAT, or income tax. Additionally, Reeves revealed plans to cut £8 billion in spending projects next year, including pausing work on infrastructure projects such as the 40 new hospitals initiative and the Restoring Your Railway program. The projected overspend includes £6.4 billion on the asylum system and £1.6 billion on transport. Reeves accused the previous government of 'covering up' the true state of the public finances and pledged to take immediate action to address the fiscal challenges.