Labour Party's Bold Move: Rachel Reeves Cancels Billions in Conservative Spending Plans

British finance minister Rachel Reeves has announced the cancellation of 5.5 billion pounds in spending plans this year and 8 billion next year, which were proposed by the previous Conservative government. This comes after an audit was presented to parliament, following Labour Party's recent election win.

British finance minister Rachel Reeves announced on Monday that she would cancel 5.5 billion pounds ($7 billion) of spending plans from the previous Conservative government this year, and 8 billion next year, claiming proper budgeting was not done. This move follows the Labour Party's victory on July 4 and an audit requested by Reeves.

The British government spent 1.14 trillion pounds in 2023/24, including 123 billion pounds of investments. Official data reveals that net borrowing reached 122 billion pounds or 4.5% of GDP. The Office for Budget Responsibility noted that borrowing since April had exceeded forecasts by 3 billion pounds.

($1 = 0.7798 pounds)

(With inputs from agencies.)