UK ministers warned to prepare for tough decisions on spending

The Treasury has made it clear that reform will be needed as Rachel Reeves begins pivotal review of public finances

Cabinet ministers have been ordered to search for cost-cutting reforms and prepare for difficult decisions over spending, as chancellor Rachel Reeves and her team formally begin the process of compiling a pivotal review of public spending.

The chancellor has already made clear that she is planning to raise taxes and take tough decisions on welfare and spending in what will be a crucial autumn for the new Labour government. She will present her first budget and a spending review setting departmental budgets for this year and next.