Rachel Reeves dealt huge blow as TalkTV star fumes ‘they’re ripping the streets apart’

Chancellor Rachel Reeves is under fire as she prepares to deliver her spring statement next week, with critics accusing her of pursuing policies that could harm economic growth. TalkTV guest Dan Hodges launched a scathing attack on Reeves, comparing her expected spending cuts to “ripping the streets apart” and questioning her approach to stimulating the economy. 

Reeves is expected to announce significant spending cuts, potentially the largest since the austerity measures of the past decade, as part of her efforts to meet the financial rules set out in the October budget. According to *The Guardian*, these cuts could result in reductions of up to seven percent for certain government departments over the next four years. 



During an appearance on Mike Graham’s TalkTV show, journalist Dan Hodges expressed disbelief at Reeves’s strategy, particularly her plans to impose £40 billion in taxes on businesses, introduce new workplace regulations, and push for net-zero emissions while simultaneously slashing public spending. 

“Rachel Reeves has said that her priority is stimulating growth. Now, this isn’t a political point—if we have a Chancellor who thinks that the way you stimulate growth is to simultaneously load £40 billion taxes on business, introduce a huge new framework of red tape and workplace regulation, say to British businesses, ‘you have to get to a point where you have zero emissions in net terms,’ and simultaneously start to slash public spending… it’s not Rachel from accounts, it’s Rachel from the madhouse! This is not going to work,” Hodges said. 

He added, “Even the most junior economic student knows that is not how you can possibly stimulate growth.” 

Host Mike Graham echoed Hodges’s concerns, noting that Reeves, who is an economist by training, “should know better.” 



The criticism comes amid uncertainty over whether Reeves will extend the freeze on income tax thresholds, a policy initially introduced by the previous Conservative government and set to last until April 2028. During Prime Minister’s Questions on Wednesday, Conservative leader Kemi Badenoch pressed Prime Minister Sir Keir Starmer to reaffirm Reeves’s earlier commitment not to extend the freeze. 

Badenoch said, “The Chancellor promised a once-in-a-parliament budget, that she would not come back for more. And in that budget, she said there will be no extension of the freeze in income tax thresholds. Ahead of the emergency budget, will he repeat the commitment that she made?” 

Starmer avoided directly answering the question, instead criticizing the Conservative Party’s record on the economy, immigration, and public services. He highlighted Labour’s achievements, such as delivering two million extra NHS appointments and increasing defence spending, as evidence of the difference a Labour government makes. 


Reeves’s spring statement, scheduled for next Wednesday, is expected to focus on spending cuts rather than tax changes. However, the lack of clarity on key issues like income tax thresholds has fueled speculation and criticism from opposition parties. 

As the Chancellor prepares to address MPs, the pressure is mounting for her to present a coherent plan that balances fiscal responsibility with the need to support economic growth. With critics like Hodges accusing her of pursuing contradictory policies, Reeves will need to defend her approach and reassure both the public and the markets that her strategy is sound. 

The spring statement will be a crucial moment for Reeves and the Labour government, as they seek to navigate the challenges of a fragile economy while delivering on their promises to voters.