The Chancellor should reduce social protection spending by billions

The Chancellor has reserved several billion pounds of reduction in spending in the event of social protection and other government services before the spring press release.

The Treasury will put the proposed cuts to the government’s official forecastist, the Budgetary Bureau (OBR) office on Wednesday in the expectations of the Chancellor’s financial stamp.

Sources have said that “the world has changed” since Rachel Reeves’ budget last October, when the OBR said that it had 9.9 billion pounds sterling to spend against its self-imposed borrowing rules.

OBR forecasts will probably see this disappear due to global factors such as commercial prices, as well as higher inflation and borrowing costs in the United Kingdom.

The Treasury will inform the OBR on Wednesday of its “main measures” – excessive changes in tax and expenses in order to respect the self -imposed rules of the Chancellor to borrow money.

The government is committed to lowering the debt as a share of the economy during this parliament and only to borrow to finance investments, and not to cover daily expenses.

These rules, implemented by most governments in rich countries, are designed to maintain credibility in the financial markets. Reeves has repeatedly said that its rules were “non -negotiable”.

The discounts of expenditure written by the Treasury will help to fill the gap that has emerged in recent months, before the OBR publishing his forecasts and Reeves made a statement on March 26.

The Treasury has blamed several world factors, especially as commercial prices and the war in Ukraine for having increased government loan costs.

“It is clear that the world has changed a lot since the fall budget. People are looking at this change occurring before their eyes,” an initiate of the government told the BBC.

“The Budget Liability Bureau will reflect that the evolution of the world in its forecasts later this month and an evolving world will be a central characteristic of the Chancellor’s response later this month.”

The initiates expect new “politically painful” “well-being” cups of well-being designed to reduce the enormous growth in health benefits, which will be described in a future speech by the secretary of work and the Liz Kendall pensions.

Questioned Wednesday if the social cups were the right approach, the Secretary of Justice, Shabana Mahmood, told the Teday program of the BBC Radio 4 that there had been a “enormous increase in the social protection budget” and that there were “too” young people who were not at work, education or training.

“There is a moral case here to ensure that people who can work can work and that there is also a practical point here, because our current situation is not durable,” she added.

Mahmood refused to comment whether the Ministry of Justice would face cuts.

Reeves previously promised a “fundamental” reform of the social protection system, with concerns concerning the increase in health benefits related to health.

Last year, the government spent 65 billion sterling pounds for sickness benefits – an increase of 25% compared to the year preceding the cocovid pandemic. This figure should increase to around 100 billion pounds sterling before the next general elections.

Part of this is a legacy of Covid, but the ministers complained about the incentives that encourage some to “play the system”.

People in universal credit must show evidence that they have applied for jobs or face sanctions – but people without work who are also eligible for disease services receive more money and are not necessarily required to look for work.

Steve Wright, secretary general of the firefighter union, said that any social protection cup “would be a scandalous attack on the poorest and most vulnerable”.

The chancellor should say that the government was always going to “repair well-being to bring people back to work” and “make the NHS more productive”.

“The space of space or no height of height, the chancellor is determined to pass the change we need to make Britain safer and prosperous, the whole government making this argument in the coming weeks,” said an initiate to the BBC.

This week, US President Donald Trump has imposed prices on his three largest business partners: Canada, Mexico and China.

Trump said the United Kingdom could avoid border taxes, but Reeves told BBC that even if the United Kingdom was not affected by prices, a world trade war would reduce growth and increase inflation.

The uncertainty about the war in Ukraine also remains, the United Kingdom deciding to stimulate defense expenses by reducing international aid.

With a view to the spring declaration, the Minister of the Cabinet Pat McFadden and the Wes Streting Health Secretary will also describe a significant conduct of efficiency within the public service, which, according to them, will result in significant workforce and cost savings.

It is understood that the economy of the Euro stagnant area and that the productivity figures in the lower United Kingdom affected OBR forecasts.

But there have also been concerns raised regarding the impact of the announced tax increases of reeves previously on companies, which should come into force in April, on the British economy.

Inflation, which measures the price rate increases over time, is expected to increase in the coming months, because households are affected by the increase in energy, water and advice.