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Home World Europe

Rachel Reeves spending review ‘set to be next big challenge’ for government as growth flatlines

26 December 2024
in Europe
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Rachel Reeves spending review ‘set to be next big challenge’ for government as growth flatlines
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Rachel Reeves faces challenges in 2025 as the chancellor prepares for a spending review amidst stagnant economic growth, according to Carl Emmerson of the Institute for Fiscal Studies. The government plans to implement efficiency savings of 5% in departmental budgets following two consecutive months of GDP contraction and revised growth forecasts for the coming year. With lower growth predictions and potential financial strain, the upcoming spending review is expected to be a significant test for the UK government.

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