Rachel Reeves is gearing up to present Labour’s inaugural Budget on 30 October, marking one of the most eagerly awaited fiscal events in over 20 years. But behind the scenes, tensions are simmering as local mayors and cabinet ministers push back against proposed cuts. The stakes are high, and all eyes are on how Reeves will navigate the economic challenges ahead.
Last-Minute Lobbying Over Transport Cuts
Local mayors are in a frenzy.
They’re scrambling to convince the Treasury to spare their transport budgets from the chopping block. The chancellor is reportedly eyeing these funds to help plug a £22 billion public spending gap revealed back in July.
- Key concerns:
- Potential cuts to essential transport services
- Impact on local economies and commuters
- The urgency of securing funds before the Budget announcement
This eleventh-hour lobbying underscores the critical nature of the services at risk.
Cabinet Ministers Go Over Reeves’ Head
In a bold move, some cabinet ministers have bypassed Reeves entirely.
They’ve penned letters directly to the prime minister, pleading for a rethink on departmental cuts. Notable figures expressing concern include:
| Minister | Position |
|---|---|
| Louise Haigh | Transport Secretary |
| Angela Rayner | Deputy PM and Housing Secretary |
| Shabana Mahmood | Justice Secretary |
Their actions highlight internal discord within the government as the Budget date looms.
‘Amazon Tax’ on the Horizon?
Whispers of a new tax are circulating.
Reeves is reportedly considering hiking business rates for online tech giants, dubbed the ‘Amazon tax’. The goal? To give struggling high-street shops a fighting chance as online retailers continue to dominate.
This move could reshape the retail landscape:
- Level the playing field between brick-and-mortar stores and online behemoths
- Generate additional revenue to address the budget shortfall
- Potentially stir debate over taxation and fairness in the digital age
