In a rare move, several cabinet ministers have reached out to Prime Minister Keir Starmer and the Treasury, raising alarms about significant spending cuts looming over their departments as the Budget date approaches on October 30. With concerns intensifying about a reported £40 billion funding gap, ministers are pressing for a last-minute reconsideration of the proposed cuts.
The atmosphere in Whitehall is fraught with anxiety as rumors circulate that some departments might face budget reductions as steep as 20% next year. Notably, Deputy Prime Minister Angela Rayner, who oversees the Ministry of Housing, Communities and Local Government, along with Justice Secretary Shabana Mahmood and Transport Secretary Louise Haigh, have reportedly expressed their worries. Their collective action—directly addressing the Prime Minister instead of the Chancellor—has raised eyebrows within political circles.
Danny Shaw, a seasoned commentator on justice and policing, has warned that such drastic cuts could “devastate” the justice system, which is already struggling with a backlog of around 68,000 crown court cases. “It would completely destroy the criminal justice system in terms of courts, probation, prisons, and legal aid,” he emphasized.
A Labour insider confirmed to the BBC that there is considerable “angst” among ministers about the Treasury’s apparent failure to appreciate the implications of deep spending cuts. A former aide to Conservative chancellors noted that such a public approach to the Prime Minister is unprecedented, highlighting the desperation felt among cabinet members.
However, a Downing Street source dismissed the notion that ministers addressing their concerns directly to the Prime Minister is unusual, framing it as a “normal part of the process” leading up to the Budget.
Education Secretary Bridget Phillipson, while declining to confirm her involvement in the letter-writing effort, stated that discussions within the government between the Chancellor and Cabinet members are routine during the Budget process. She reaffirmed that “education is always a priority for Labour governments,” hinting that her department may not be insulated from potential cuts.
As the government faces the daunting task of plugging the funding gap for public services, this Budget could see the largest tax increases in a generation. Chancellor Rachel Reeves is poised to introduce a new borrowing rule requiring that day-to-day spending be financed through tax revenues.
Despite a commitment to uphold manifesto pledges against raising taxes on working people, attention is shifting toward potential adjustments to National Insurance, employer pension contributions, and capital gains tax. Additionally, with fuel prices dropping, there’s speculation about a possible increase in fuel taxes.
As the clock ticks down to the Budget, the pressure is mounting for the government to navigate these challenging fiscal waters while maintaining public services and keeping its promises to the electorate.
