As tensions rise ahead of the Chancellor’s crucial Spring Statement, ministers are facing criticism over proposed cuts to public services, described as “bleeding stump” reductions, all in an attempt to address Rachel Reeves’ efforts to balance the books.
Unpalatable Cuts Threaten Key Services
Cabinet members are reportedly at odds, with speculation swirling that Education Secretary Bridget Phillipson has suggested extreme cuts to her department, including ending universal free school meals for infants, charging students for period products, and eliminating junior ISAs for children in care.
These proposals have been described as “politically impossible” by those within the department.
Despite the claims, Phillipson’s allies have denied supporting these measures, calling the suggestions “baffling,” and explaining that they were part of an early, zero-based review for the upcoming Spending Review due in June.
Keir Starmer Aims to Calm Growing Tensions
With the government facing a challenging week ahead, Labour leader Keir Starmer is trying to ease the mounting frustrations.
Starmer emphasized that despite the difficult decisions on the horizon, record investments would still be made in key areas, including the NHS.
He highlighted the consistent improvement in waiting list times over the winter, suggesting that the core work of the government would continue while efforts would be made to improve efficiency.
Chancellor’s Denial of Tax-Related Concerns
Meanwhile, Chancellor Rachel Reeves has been forced to address concerns regarding her government’s fiscal approach, particularly after higher taxes and gloomy economic forecasts dominated the news.
Despite warnings from a think-tank predicting that living standards could fall under this government, Reeves rejected claims that her approach would equate to austerity.
She confirmed that civil service departments would need to find more than £2 billion in cuts, with unions warning that as many as 50,000 jobs could be at risk.
Struggling to Close the £15 Billion Deficit
The government’s struggle to close a potential £15 billion deficit remains a critical issue.
Despite efforts to trim £5 billion off benefits, larger savings are still needed to offset slumping growth forecasts.
While tax increases are off the table for now, public spending is expected to shrink in certain areas.
As departments face the pressure of these cuts, unprotected sectors may bear the brunt of reductions.
The Bleeding Stumps Strategy: A Political Tactic?
Sources have revealed that several government departments, including the Department for Education, are reportedly adopting a “bleeding stumps” strategy—a tactic where absurd proposals are floated in an attempt to deflect cuts.
In this case, Phillipson’s department is said to have been considering reducing its budget by £500 million and potentially adjusting the Turing Scheme, which funds UK education providers supporting students studying abroad.
Controversial Cuts in Education
Further suggestions from Phillipson’s department include ending universal free school meals for younger children, making the program means-tested instead.
Other proposals include charging for period products, eliminating junior ISAs for children in care, and halting the wraparound childcare subsidy for parents.
Department for Education’s Denial
A spokesperson from the Department for Education (DfE) has strongly denied these proposals, emphasizing that the department has been cooperating closely with other government officials to address the financial challenges left by previous administrations.
The DfE also reaffirmed its commitment to improving education and supporting teachers to use funds efficiently.
Cabinet Frustrations and Gendered Attacks
Tensions over the leaks have sparked anger, especially concerning the targeted attacks on senior female ministers.
The Mail on Sunday reported that frustrations regarding briefings against figures like Home Secretary Yvette Cooper, Work and Pensions Secretary Liz Kendall, and Education Secretary Bridget Phillipson were raised at a recent Cabinet meeting.
In response, Keir Starmer made it clear that such attacks were unacceptable and warned that there would be consequences if they continued.
As the government braces for the upcoming Spring Statement, the stakes are high, and the internal divisions may spill over, further complicating efforts to stabilize the country’s finances.