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

BREAKING NEWS: Rachel Reeves Slashes Departmental Spending Ahead of Budget Rachel Reeves, the UK's Chancellor of the Exchequer, has informed her cabinet colleagues that government departments will have their access to the Treasury's emergency funds severely limited. The move comes just 11 weeks before Reeves is set to deliver Labour's Budget. The Treasury Reserve, worth £9 billion, has been used to fund higher public sector pay and compensation payouts in recent times. However, Reeves has now instructed that only departments which have maximised their savings will be considered for reserve funds. This decision aims to help Reeves stick to her borrowing rules by reducing government borrowing and keeping department spending within totals announced at the June Spending Review. Any borrowed funds from the reserve must be repaid, according to Reeves' warning. The move is seen as a pre-budget measure to balance public finances while boosting economic growth. The exact impact of this decision on various departments remains unclear for now. This is a developing story and we will provide updates as more information becomes available. *This is a developing story. Updates will be provided as more information becomes available. Based on reporting from Bbc.*