UK Cabinet urges Chancellor of Exchequer to revise spending cut plans

UK Chancellor of the Exchequer Rachel Reeves will face scrutiny from her own party this week as she prepares to announce billions of pounds in public spending cuts, according to Bloomberg.

More than half of the Cabinet ministers have urged Chancellor Reeves to reconsider her proposed spending cuts. During recent parliamentary debates, several Labour MPs also criticized the government's austerity measures, the agency noted.

In her speech yesterday, Rachel Reeves stated that the government plans to reduce civil service staffing by 10,000 positions to cut administrative costs. The Chancellor also pledged to avoid implementing any additional tax increases.

However, this task could become more challenging if the UK government reduces or eliminates its digital services tax in an effort to avoid potential US tariffs. Neither Chancellor Reeves nor Economic Secretary Darren Jones have ruled out modifying the tax, Bloomberg reports.