URGENT: Rachel Reeves Slashes Departmental Spending in Pre-Budget Crackdown

BREAKING NEWS Rachel Reeves Cracks Down on Departmental Spending Ahead of Budget Labour's Chancellor Rachel Reeves has informed her cabinet colleagues that government departments will have limited access to the Treasury's emergency funds, a move aimed at reducing borrowing and keeping spending within budget totals. Reeves' letter to ministers states that the Treasury Reserve, worth £9 billion, will only be considered for departments that have maximised their savings. This restriction is set to take effect immediately, with any borrowed funds requiring repayment. The decision comes just 11 weeks before Reeves delivers Labour's Budget, amid growing pressure to boost economic growth while balancing public finances. The aim of restricting reserve access is to help the Chancellor stick to her borrowing rules and keep department spending in check. This move marks a significant shift in government spending strategy, with departments now facing increased scrutiny over their financial management. The impact on public services and projects remains uncertain at this stage. Reeves' office has confirmed that the Treasury Reserve will be used only for "genuinely unforeseen, unaffordable, and unavoidable pressures". Any exceptions to this rule will require explicit approval from the Chancellor. This is a developing story, with further details expected in the coming days as Labour's Budget plans take shape. *This is a developing story. Updates will be provided as more information becomes available. Based on reporting from Bbc.*