Cut spending to fix UK public finances, investors urge Rachel Reeves

Prime Minister Keir Starmer abandoned planned welfare cuts after Reeves retreated over separate plans to curb winter fuel payments to pensioners. Analysts at Capital Economics estimate the two U-turns have left a £6bn fiscal gap by 2029-30.

Cut spending to fix UK public finances, investors urge Rachel Reeves

More from this author

UK borrowing costs hit 27-year high adding to pressure on Reeves

Cut spending to fix UK public finances, investors urge Rachel Reeves

UK lenders approved most mortgages for six months in July, says BoE

What could trigger a fiscal crisis in the UK?

Later Budget may hinder, not help the Chancellor

UK Versus the Euro-zone in Charts

How much will the UK Chancellor need to raise in the Budget?

Drop-In: What’s really holding up the commercial real estate recovery?

Drop-In: France’s political turmoil and the fragility of global bond markets

Fracturing in the Age of Trump - London September 2025

Central Bank Drop-In: Unpacking the Fed, ECB and Bank of England September meetings

Fracturing in the Age of Trump - New York October 2025