Rachel Reeves Faces Fiscal Tightrope Amid Global Challenges

British finance minister Rachel Reeves is determined to maintain fiscal rules amid global disruptions, hinting at potential spending cuts. Despite economic challenges, she plans a balanced budget update. Reeves suggests public spending will rise but anticipates 10,000 public sector job cuts to adhere to budget targets.

British finance minister Rachel Reeves remains committed to adhering to her fiscal rules despite global economic disruptions, suggesting potential belt-tightening to achieve financial targets in the upcoming budget update.

In her interview with Sky News, Reeves acknowledged the adverse effects of slower economic growth and rising borrowing costs while addressing the potential impacts of a global trade war instigated by U.S. President Donald Trump's import tariffs.

Reeves anticipates a rise in public spending, exceeding inflation annually, until the current parliament ends in 2029. However, she foresees strategic spending cuts, including reducing 10,000 public sector jobs, aiming to save over 2 billion pounds per year by the decade's end.

(With inputs from agencies.)