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Rachel Reeves warned of ‘moral bankruptcy’ as she prepares cuts

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Chancellor Rachel Reeves is facing criticism as she prepares to announce potential cuts to Britain’s welfare budget, with charities and MPs warning that such measures would disproportionately harm the poorest in society. The government has already reduced foreign aid spending to increase defense funding, and there are fears that further cuts to welfare could push more people into poverty at a time when the cost of essentials is rising.

Charities have condemned the proposed cuts as “morally bankrupt,” arguing that the burden of austerity should not fall on those already struggling. Anna Marriott of Oxfam criticized the government for targeting the poor while ignoring the growing wealth of the UK’s richest individuals. Lynn Perry of Barnardo’s echoed these concerns, emphasizing that 4.3 million children in the UK are already living in poverty, with families struggling to afford basic necessities like food and energy. She urged the government to prioritize children in its decision-making.

Former Labour leader Jeremy Corbyn also slammed the government’s approach, accusing it of making “difficult choices” only when they harm the most vulnerable. He highlighted the refusal to scrap the two-child benefit cap, cuts to winter fuel allowances, and reductions in foreign aid as examples of policies that disproportionately affect the poor. Corbyn argued that there is always money for war but never enough to support those in need.

The Office for Budget Responsibility (OBR) is expected to confirm this month that nearly £10 billion of fiscal “headroom” has been wiped out, leaving the government with limited options. Some Labour MPs have expressed concern that the Chancellor’s policies could alienate voters, particularly in “Red Wall” constituencies, where support for Reform UK is growing. One MP warned that colleagues in these areas risk losing their seats if the government continues to pursue unpopular welfare cuts.

However, there is also support within Labour for measures aimed at reducing dependency on benefits and encouraging people back into work. Telford MP Shaun Davies highlighted the sharp rise in long-term sickness among young people, calling it a “disaster” for both individuals and the country. He argued that the government must address the issue to prevent a “lost generation” and reduce reliance on migration to fill job vacancies.

Rachael Maskell, another Labour MP, stressed the importance of ensuring that those who need social security receive adequate support, whether to access work or to live with dignity if they are unable to work. She called for a more progressive tax system to ensure that the wealthiest contribute their fair share.

As Chancellor Reeves prepares to deliver her statement on the national finances later this month, the debate over welfare cuts highlights the tension between fiscal responsibility and social justice. Critics argue that targeting the poorest is both morally wrong and politically risky, while supporters believe that reducing welfare dependency is essential for economic stability and growth. The government’s decisions in the coming weeks will have significant implications for millions of vulnerable families across the UK.