Rachel Reeves mocked over deliberate Elon Musk-style waste reducing drive | Politics | News | EUROtoday

Rachel Reeves is eyeing up Elon Musk-style spending cuts to authorities waste in an effort to make the sums from as we speak’s Spending Review. The Chancellor’s plans have raised incredulous eyebrows after Treasury paperwork revealed she is banking on a whopping £13.8 billion in effectivity financial savings.

According to the doc, entitled ‘net efficiency gains vs 2025-26 planned Resource Department Expenditure Limits’, it additionally places Wes Streeting’s Department for Health on target for an unlimited £9 billion of the full £13.8 billion financial savings. Health is adopted in a distant second place by Defence who’ve been advised to seek out £905 million in effectivity financial savings, adopted by HMRC with £773 million. It comes as each division has been ordered to seek out no less than 5% cuts from reducing waste.

A Department for Health supply didn’t appear fazed by the calls for from Ms Reeves, insisting massive financial savings are already being discovered.

They pointed to reducing company prices such because the division’s communications finances, reducing Integrated Care Board working prices by 50%, and abolishing National Health England.

DHSC additionally hopes that their new NHS App, which obtained £10 million in funding as we speak, will save round £200 million in lowering the variety of letters the well being service sends to sufferers.

Finally they’ve minimize £1 billion in company workers prices.

However, Michael Gove urged Labour is not going to make the promised financial savings, as soon as once more elevating the specter of tax rises to make up the distinction.

Responding to the Government’s effectivity plans, he quipped: “I have a bridge to sell you”.

Christian May, editor of the financial newspaper City AM, added: “The idea that Whitehall departments will make £14bn a year worth of ‘efficiency savings’ by 2028-2029 seems particularly heroic, and only adds to the growing expectation that the Chancellor will in fact reach for tax hikes to plug the gap.”

This hypothesis was added to this night by Chief Secretary to the Treasury Darren Jones, who refused to rule out tax rises in Ms Reeves’ November Budget.

However Ms Reeves insisted to GB News that “taxes won’t need to go p to pay for what is in this spending review”.

Shadow Chancellor, Mel Stride stated: “Labour can’t be trusted on tax. By only ruling out tax rises to fund this Spending Review, Labour is leaving the door wide open for yet another raid on the pockets of hardworking families and businesses in the autumn.”

“Instead of offering certainty, Labour ministers are enjoying video games with fastidiously worded statements. British taxpayers deserve honesty – not caveats and loopholes. We cannot afford Labour.”