Reeves requires 2 billion pounds, discounts to help reform public financial affairs

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Chancellor Rachel Reeves requested a 2 billion pounds efficiency campaign to help fill a hole in public financial affairs, but her financial problems can worsen in the medium term because she is looking to make tax concessions to US President Donald Trump.

Refiz It did not deny that the annual digital services tax of 800 million pounds in the UK is on the table in commercial talks with the United States, an attempt to reduce the impact on the new global world tariff in Trump, expected on April 2.

The chancellor suffers from major financial problems before her spring statement on Wednesday, after she left slow growth and high borrowing costs facing a financial repair function of up to 15 billion pounds.

The reduction of 2 billion pounds will help the cost of Whitehal management by 2030 to fill some of this gap, along with 5 billion pounds of discounts in the social welfare that was announced last week. The departments ’budgets will also be pressed significantly to close the financial hole, as Reeves sets the path to meet the borrowing rules it has imposed.

Reeves and Pits McFaden, Minister of the Cabinet Office, will write this week to all departments to inform them of reducing their administrative budgets by 15 percent by 2029-30. They spoke of the need for a “more flexible country”.

Reeves said that the best use of technology and the reduction in the use of consultants, as well as the budgets of communications and travel may be part of a package to better spend money on the front line services.

The Cabinet Office said: “We cannot stick to business as usual. By reducing administrative costs, we can target resources in the front lines services,” said the Cabinet Office.

Dave Pinman, head of the Civil Service Federation in the FDA, has warned that the cuts may lead to great losses in jobs and damage to public services. He said: “The idea that the discounts of this scale can be delivered by cutting human resources teams and COMMS is for birds.”

However, the Reefs financial dilemma can increase the condensation later in the year if Britain provides a reduction in digital services tax or even the cancellation of digital services tax, a tax that attracted the anger of American technology companies and the Trump administration.

Financial times revealed last week that the tax, is expected to collect 800 million pounds this year, He was on the table In talks with the United States, it aims to reduce any tariff imposed on the United Kingdom by Trump from April 2.

The counselor, who was talking to the BBC, did not deny that the tax was restricted but said: “Let’s see how it is progressing in the coming days.”

She insisted that “the right thing that companies operating in the United Kingdom are paying their taxes in the United Kingdom,” but she added: “We are currently discussing about a full set of things related to definitions with the United States.”

British officials say that the United Kingdom and the United States are about to put “the heads of the agreement” on a deal that initially focus on technology cooperation and is racing to complete it before April 2.

However, Treasury officials said that any deal will not be covered by Reeves in its spring statement.

Digital services tax in Britain, which strikes American technology giants including Alphabet, Meta and Amazon, was presented by the previous conservative government in April 2020 to ensure that global digital companies pay a tax that reflects the value they derive from UK clients.

The fixed rate tax is applied by 2 percent to companies whose global revenues exceed 500 million pounds, and are applied to the revenues derived from the United Kingdom.

However, any suggestion that Britain makes tax concessions to American technology giants while reducing spending on luxury at one time and other areas of public spending toxicly toxic.

“It will be the stealing of the disabled to the exposure of musk and Trump. The government should stand before the British people who do not bow to Trump and their American billionaire,” said Daisy Cooper, a liberal democratic cabinet spokesperson.

Reeves statement will be framing on Wednesday-it is expected that it will last between 20 to 30 minutes-from the counselor in response to a “changing world”, but the opponents will say it is a recognition of economic failure.

The worsening economic outlook has eliminated 9.9 billion pounds from the head hall, which it gave itself in its budget in October against its main financial rule, which says the current spending should be balanced with tax receipts by 2029-30.

Government officials say the high costs of borrowing and slow growth have left Reeves to find between 10 billion pounds-15 billion pounds. The luxury savings will reach 5 billion pounds of this total, with spending from external aid to the heavy defense budget in the capital will give about 2 billion pounds of additional flexibility. A campaign of tax compliance with 1 billion pounds can win at the Budget Responsibility Expectations Office on Wednesday.

Most of the rest of the deficiency will have to be huge to spend departments later in Parliament, as well as savings in Whitehall’s efficiency budgets on Sunday.