United Kingdom The ‘scissors’ to social spending in order to compensate for your accounts with the ascent in defense and current indebtedness. He Keir Starmer Labor Government has confirmed the Public spending cuts not to resort to tax increases.
The Minister of Economy, Rachel Reeveshas been in charge of presenting the plans in Parliament, with the call Spring statementin which he informed about the state of public finances at a time when the global economy has become “more uncertain“And the costs of indebtedness have promoted for” many of the great economies “of the world.
As part of the control of that expense, the Executive also will reduce administrative costs of the ministries in 15% for 2030, in contrast to the announced Increase in the defense budget of 2.5% of GDP by 2027, but with the ultimate goal of Up to 3% In 2029.
“The Responsible decision It is to reduce Our levels of indebtedness in the coming years for We can spend more on workers’ priorities And that is exactly what this government will do, “said the minister when confirming changes in social benefits, such as cuts in some aid and freezing of others, including inability, which will allow saving of 3.4 billion pounds (4,080 million euros) for 2029/30.
Reeves reiterated the two fiscal rules imposed by the Labor Government and that described something “non -negotiable”: not to increase the country’s indebtedness to deal with public spending and reduce the level of debt by 2029/30. In this regard, the minister has recognized that, if no actions are adopted to cut public spending, the deficit in five years would reach 4,100 million pounds (4.9 billion euros).
The minister warned that the current economic situation responds to a world “that is changing Before our eyes “for the impact of war on Ukraine.
