Letters from ministers complaining about the budget have gone over the head of Chancellor Rachel Reeves to Sir Keir Starmer and Number 10.
Cabinet ministers are urgently appealing to Prime Minister Keir Starmer to reconsider some of the proposed spending cuts ahead of the upcoming budget. These cuts are being implemented to balance significant pay rises and spending increases in other areas. With final budget decisions due by the end of Wednesday, ministers are expressing concerns over the scale of the cuts needed, especially in departments such as housing and transport.
Letters from cabinet members, bypassing Chancellor Rachel Reeves, have been sent to Starmer and Number 10, reflecting unease about the fiscal pressures being placed on their departments. Some ministers argue that the cuts will result in a cycle of financial strain, creating future problems that may need to be addressed later in the year.
Although Reeves plans to ease borrowing rules and raise up to £40bn through tax increases and welfare cuts, the costs associated with public sector pay rises are adding to the financial burden, requiring deep cuts across multiple departments. Despite these concerns, government officials insist that such letters are routine during budget planning and not unusual at this stage in the process.
With Starmer and Reeves out of the country next week, only minor adjustments will be possible after Wednesday, limiting opportunities to alter the budget significantly before the spending review on 30 October.
