UK cuts welfare spending while increasing defense budget

Britain's finance minister Rachel Reeves is preparing for significant spending cuts in welfare and civil services while increasing defense spending. This move is part of her commitment to balance the country's day-to-day finances with tax revenue by the end of the decade. Reeves made these comments during a recent speech, emphasizing that the government will adhere to its fiscal rules despite challenges from the global economy. She acknowledged that slow economic growth and rising borrowing costs have complicated her plans. The situation has worsened due to concerns over potential trade conflicts triggered by actions from the US. Last week, rising British debt costs signaled investor anxiety regarding the government's financial situation. This was fueled by borrowing figures that were higher than expected. In response, the government announced cuts to welfare spending that aim to save around 5 billion pounds each year, which has upset some members of the Labour Party. Reeves is set to provide more details in her upcoming Spring Statement. She hopes to outline additional measures that will help her regain 10 billion pounds in financial flexibility to meet her fiscal goals.