LONDON, The newly-appointed Chancellor of the Exchequer Rachel Reeves pledged Monday to restore UK economic stability after revealing GBP 22 billion (USD 28.3 billion) of unfunded pressures inherited from the previous Government.
Addressing the House of Commons clarified that finds from a Treasury audit commissioned by the Chancellor expose billions of pounds of unfunded commitments from the previous Government, including the Rwanda scheme, the Advanced British Standard and the New Hospital Programme.
Taking immediate action, the Chancellor announced GBP 5.5 billion (USD 7.07 billion) of savings this year and GBP 8.1 billion (USD 10.42 billion) next year to tackle the overspending.
She also committed to set out full fiscal plans, alongside a Spending Review, at the Budget on 30th October.
“This is not the statement I wanted to give today, and these are not the decisions I wanted to make. But they are the right decisions in difficult circumstances,” Chancellor of the Exchequer, Rachel Reeves said.
The dif
ficult decisions taken by the Chancellor have secured savings including over GBP 1 billion (USD 1.29 billion) next year, rising to over GBP 4 billion (USD 5.15 billion) by 29/30 by not proceeding with the previous government’s unfunded adult social care charging reforms.
Around GBP 1.5 billion (USD 1.93 billion) will be saved per year by targeting Winter Fuel Payments meaning households with someone aged over State Pension age receiving Pension Credit, Universal Credit, Income Support, income-based Jobseeker’s Allowance and income-related Employment and Support Allowance will continue to receive Winter Fuel Payments. This will better target support for heating costs at those who need it.
Immediate savings include GBP 800 million (USD 1.029 billion) this year and GBP 1.4 billion (USD 1.8 billion) next year from scrapping the Rwanda migration partnership and scrapping retrospection of the Illegal Migration Act, GBP 70 million (USD 90.04 million) this year by cancelling the Investment Opportunity Fund and othe
r small projects, GBP 185 million (USD 237.97 million) next year from cancelling the Advanced British Standard and GBP 785 million (USD 1 billion) next year from stopping unaffordable road and railway schemes.
The Chancellor also announced a review of the underdelivering New Hospital Programme.
She outlined long-term plans to tackle unacceptably high levels of welfare fraud and error as well as addressing falling public sector productivity and a new Office of Value for Money.
Source: Kuwait News Agency