Up to £115bn government spending cuts ‘staring us in the face’ 

The Treasury has been urged to take the lead on dramatic spending cuts.

Around £115bn in cuts to government spending each year are “staring us in the face”, according to a new report, as Chancellor Rachel Reeves faces increasing pressure to regain control of the public finances.

In a paper published by the think tank Policy Exchange, the Chancellor has been warned to prevent a “twin-pronged fiscal crisis” by reducing the deficit without raising taxes, any hikes to which could further damage growth prospects in the coming years.

The report, which has been backed by the former Office for Budget Responsibility (OBR) chairman Robert Chote, calls for mass spending cuts to the welfare bill and reflects growing calls for the government to prioritise reducing its debt load.

Roger Bootle, wh