The Labour Chancellor has set out plans to fast-track a crackdown on sickness benefits, declaring that Britain “cannot keep footing the bill” for the unemployed.
The Treasury is understood to be specifically targeting benefits for those signed off work for “bad nerves” and anxiety, aiming to encourage more Britons to get back to work.
It will publish a fuller plan to reduce disability benefit spending ahead of the spring statement at the end of March.
The reforms come as part of Reeves’s broader strategy to revitalise Britain’s economy, with a major growth speech expected later this week.
The Chancellor has vowed to tackle spiralling welfare costs
PA
Rachel Reeves has vowed to tackle spiralling welfare costs after criticising the Tories for shelling out £8billion more than they had initially budgeted on benefits.
She said: “As a country, we cannot keep footing the bill for the spiralling numbers of people out of work.
“Next week I will tell the country that when it comes to our welfare system, I will not hesitate to act, as we have done to restore the public finances,” she wrote for The Sun on Sunday.
“This is an urgent problem. It can’t be ignored. We’ve got to grip it, once and for all.”
As it stands, the Government spends nearly £65billion on incapacity and disability benefits, exceeding the entire defence budget.
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The announcement comes as Britain’s economy has indicated signs of stagnation as major retailers like Sainsbury’s announce job cuts.
Now, Labour MPs are privately pushing for a more optimistic economic vision, with one suggesting the party needs to “do more Thatcher” and shift away from low-wage, low-skill jobs.
Another Labour MP emphasised the priority of economic growth, claiming: “If it is a choice between hitting the 2030 eco targets and growth, we must always choose growth.”
Reeves is set to deliver a major speech this week promising to unleash Britain’s “animal spirit” and bring more Trump-like positivity to the economy.
The Chancellor will announce reforms to planning regulations, ensuring newts and “nimbys” can no longer block new housebuilding developments
Reeves is set to deliver a major speech this week promising to unleash Britain’s “animal spirit”
PA
She has also pledged to slash “unnecessary regulation and red tape” and “turbocharge our economy”, writing for The Sun.
The reforms will include default approval for new homes near train stations, subject to appropriate applications.
Additionally, she will signal support for expanding airports, including Heathrow, despite opposition from some Cabinet members including Ed Miliband.
Eco rules hampering major infrastructure projects will be eased under the new plans, particularly addressing delays caused by protected species like the Great Crested Newt.
The reforms will target areas near transport hubs for development, with Reeves saying that “too often the answer to new development has been ‘No'” which has “stunted economic growth and left working people worse off”.