Proposed benefits cuts show the folly of self-imposed fiscal rules
NEF responds to today's news that this government is drawing up billions in cuts to welfare spending
05 March 2025
Hannah Peaker, deputy chief executive at NEF, said:
“Trailed cuts to welfare will mean an even bigger squeeze on living standards for the poorest, undermining the government’s growth mission and flying in the face of their child poverty strategy.”
“Justifying this decision by saying that Reeves’ “financial buffer” has been wiped out is folly: the fiscal rules which define the government’s spending headroom are entirely self-imposed and can be changed at the flick of the chancellor’s pen.
“This government has plenty of ways to raise the money it needs to provide vital services, and yet they seem unwilling to confront those trade-offs — instead crossing fingers for growth and reflexing to austerity. They are ignoring the potential from increasing taxes on the wealthiest, borrowing responsibly and scrapping stealth subsidies to banks.”
Notes
The New Economics Foundation is a charitable think tank. We are independent of political parties and committed to being transparent about how we are funded.
Topics Social security
