Rachel Reeves has recently pledged to improve the UK’s economy and living standards by reducing the government’s running costs by 15% and cutting 10,000 civil service jobs. Prior to the spring statement, she defended her management of the economy since the election and admitted that she is not satisfied with the current economic situation. Reeves stated that it will take more than a few months to reverse over a decade of economic stagnation, but necessary changes are being made to boost Britain’s growth and attract investment into the economy.

Reeves plans to adhere to her fiscal rules and will not raise taxes, instead opting for cuts within the central government to stay within her spending limits. Although overall government spending will increase, particularly for defense and the NHS, other departments are expected to make cuts of up to 11%. The administrative costs of the government will be reduced by 15% by the end of the parliament, according to Reeves, leading to the elimination of 10,000 civil service jobs.

Reeves acknowledged that the world has changed and is affecting growth in every country, but expressed her belief that more needs to be done to speed up growth. In response to a forecast from the Joseph Rowntree Foundation suggesting that all UK families will be worse off by 2030, Reeves disputed the findings and stated that living standards will rise.

The chancellor also addressed criticism over her acceptance of free tickets to a Sabrina Carpenter concert, explaining that the tickets were offered as hospitality and were not available for purchase. She emphasized her security needs as the reason for accepting the tickets and stated that she would declare their value.

Source: https://www.theguardian.com/politics/2025/mar/23/rachel-reeves-promises-economy-and-living-standards-will-improve