Reeves Unveils Tough Public Spending Reforms

British finance minister Rachel Reeves calls for a 5% budget saving across government departments to reduce waste and emphasize key policies, ahead of a new spending review. Departments will undergo strict financial scrutiny, ensuring each government expense supports set priorities and provides value for money.

LONDON, Dec. 9 (Reuters) - British finance minister Rachel Reeves has announced a push for efficiency in government spending, urging departments to save 5% of their budgets. This effort aims to eliminate waste and bolster key policy initiatives as a comprehensive spending review looms.

The Treasury emphasized that each pound spent would face a meticulous review process, aligning expenditures with policy priorities set last week. This fiscal reform marks the first zero-based spending review in 17 years and is designed to adapt public services to modern demands.

While Reeves remains firm on achieving efficiency savings, recent criticism over increased taxes on hiring has sparked concerns. Still, Reeves reassures that October's budget adjustments are isolated events, with future fiscal strategies remaining unspecified for now.

(With inputs from agencies.)