UK Finance Minister Says Govt to Cut Costs by 15 Percent

A handout picture released by the BBC, taken and received on March 23, 2025, Britain's Chancellor of the Exchequer Rachel Reeves appearing on the BBC's "Sunday with Laura Kuenssberg" political television show in London. (Photo by Jeff OVERS / BBC / AFP)
A handout picture released by the BBC, taken and received on March 23, 2025, Britain's Chancellor of the Exchequer Rachel Reeves appearing on the BBC's "Sunday with Laura Kuenssberg" political television show in London. (Photo by Jeff OVERS / BBC / AFP)
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UK Finance Minister Says Govt to Cut Costs by 15 Percent

A handout picture released by the BBC, taken and received on March 23, 2025, Britain's Chancellor of the Exchequer Rachel Reeves appearing on the BBC's "Sunday with Laura Kuenssberg" political television show in London. (Photo by Jeff OVERS / BBC / AFP)
A handout picture released by the BBC, taken and received on March 23, 2025, Britain's Chancellor of the Exchequer Rachel Reeves appearing on the BBC's "Sunday with Laura Kuenssberg" political television show in London. (Photo by Jeff OVERS / BBC / AFP)

UK finance minister Rachel Reeves said Sunday she plans to cut the costs of running government by 15 percent within four years, as she grapples with strained public finances.

Her comments came ahead of her crucial Spring Statement on Wednesday when she is expected to detail billions of pounds of spending cuts across various government departments, AFP reported.

"We are, by the end of this parliament, making a commitment that we will cut the costs of running government by 15 percent," she told the BBC.

The broadcaster reported that target would translate to annual savings of £2.2 billion ($2.8 billion) across Britain's civil service, which employs more than 500,000 people.

Reeves said it would be up to individual departments to decide how many civil servants will lose their jobs but added that personnel could be cut by 10,000.

"I would rather have people working on the front line in our schools and our hospitals, in our police, rather than in back-office jobs," she told Sky News.

Reeves also insisted that she will stick to her own fiscal rules when she delivers her financial update on Wednesday.

They are not to borrow to fund day-to-day spending and to see debt fall as a share of the gross domestic product by 2029-2030.

Since she has also committed to not increasing taxes, sticking to the rules raises the prospect of spending cuts to some departments.

The Labour government has failed to get Britain's economy firing since it swept to power last July, a task complicated by Donald Trump's return to the White House.

"The world has changed," Reeves told Sky.

"We can all see that before our eyes, and governments are not inactive in that –- we'll respond to the change and continue to meet our fiscal rules."

Official data released on Friday showed that public sector net borrowing -- the difference between spending and tax receipts -- grew last month, leaving Reeves with little wiggle room to meet her rules.

The restrictions are designed to ensure that the government's spending plans maintain credibility in financial markets.

On Tuesday, the government announced contested cuts to disability welfare payments, hoping to save more than £5 billion annually by the end of the decade.

Reeves insisted Sunday that there would still be "real-terms" increases in total public spending in every year of this parliament, which is due to end in 2029.



South Korea, China Industry Ministers Agree to Cooperate in Evolving Global Environment, Seoul Says

Chinese Commerce Minister Wang Wentao attends a meeting with global business leaders at the Great Hall of the People in Beijing, China, March 28, 2025. (Reuters)
Chinese Commerce Minister Wang Wentao attends a meeting with global business leaders at the Great Hall of the People in Beijing, China, March 28, 2025. (Reuters)
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South Korea, China Industry Ministers Agree to Cooperate in Evolving Global Environment, Seoul Says

Chinese Commerce Minister Wang Wentao attends a meeting with global business leaders at the Great Hall of the People in Beijing, China, March 28, 2025. (Reuters)
Chinese Commerce Minister Wang Wentao attends a meeting with global business leaders at the Great Hall of the People in Beijing, China, March 28, 2025. (Reuters)

The industry ministers of South Korea and China met on Saturday to discuss the evolving global trade environment and agreed to cooperate bilaterally as well as on multinational trade forums, the South's industry ministry said.

China's Commerce Minister Wang Wentao is visiting Seoul for a three-way ministerial meeting on Sunday with South Korea's Ahn Duk-geun and Japanese Trade Minister Yoji Muto.

"They held discussions on bilateral cooperation measures and trade issues in response to changes in the global trade environment," the South Korean ministry said in a statement.

The first meeting of the two countries' industry ministers is the first since November 2023 and comes as US President Donald Trump's promised tariffs are expected to impact imports from the two Asian export powers.

Trump has already imposed 20% tariffs on all Chinese imports, saying Beijing has failed to stem the flow of precursors for the addictive opioid fentanyl.

South Korea is bracing for duties that could hit its major exports to the United States, including semiconductors and electric vehicle batteries. Ahn has said a 25% tariff on autos unveiled this week by Trump was expected to create "considerable difficulties" for South Korean automakers.