Rachel Reeves plans to launch an initiative targeting “waste and inefficiency” in the public sector, reminiscent of Elon Musk’s strategies, following the UK Prime Minister’s £600 million investment deal with China. Despite facing criticism over her Beijing visit amid financial turmoil, Reeves aims to collaborate with the private sector to maximize taxpayer funds. There are calls for expert committees to assess departmental spending. Meanwhile, the Prime Minister is emphasizing the importance of a strong relationship with China for economic growth, despite concerns over rising debt costs and potential fiscal rule violations. Britain’s economic situation is prompting fears of a 1970s debt crisis.
Rachel Reeves will launch an Elon Musk-style fight against “waste and inefficiency” as the Prime Minister secures a £600m injection from China.
She plans to do so after a week of turmoil in financial markets that saw her Beijing visit criticized.
Ms Reeves will lead this new initiative to tackle waste across the public sector and will “leave no stone unturned”.
The Sunday Telegraph’s Chancellor of the Exchequer Darren Jones said authorities would work with the private sector to “embrace ideas, expertise and innovation” to cut unnecessary spending.
He said committees of experts outside government would be introduced into each department to bring a perspective on how taxpayers’ money is spent and how best to utilize it. He explained that it was done.
This is part of a cross-pollination effort in the new Trump administration by Elon Musk and Vivek Ramaswamy, tasked with reviewing regulation, spending and staff cuts within the government as part of the Department of Government Efficiency (the “Governor”). It reflects.
On Monday, the Prime Minister will announce a new government strategy aimed at encouraging more AI companies to invest in the UK to boost growth.
This follows the announcement that China has agreed to invest £600 million in the UK over five years.
Rachel Reeves (pictured) set to launch Elon Musk-style fight against ‘waste and inefficiency’ as Prime Minister secures £600m injection from China
After speaking with Chinese Vice Premier He Lifeng (right), Reeves said he wanted a long-term relationship with the communist country that was “truly in our national interest.”
This reflects efforts across the pond, where Elon Musk is looking at regulation, spending and staff cuts within the government as part of the Department of Government Efficiency (the “Governor”).
The Prime Minister insisted that a close relationship with Beijing was “crucial” to economic growth.
After a meeting with Chinese Vice Premier He Lifeng, she said she wanted a long-term relationship with the communist country, which is “directly in our national interests.”
A week later, rising debt costs drained Reeves of all of her reserves and the Treasury was forced to intervene to stabilize financial markets after being accused of violating her own fiscal rules. Ta.
But her announcement came amid criticism from Conservatives who said she should have stayed in the UK to “sort out this mess that she has caused”.
She also faced increasing attacks from within the party. One Labor MP told the Telegrao newspaper: “The government’s whole strategy is about growth, but there is no confidence. Growth is about low energy prices, confidence and investment in infrastructure, and she has done the opposite. .”
They went on to say that “support for her has evaporated and even those who initially supported her are now reeling” and that “there is simply no solution for her.”
They added that Mr Reeves’ “hopeless” tenure so far has been “not the second place where MPs sit and chat over a cup of tea or beer, or even bump into each other.” However, it has become the first topic of conversation,” he added. Others are in the hallway.
Another Labor MP said her visit to China ‘smells a sense of desperation’ and shows Britain is ‘running out of options’ to boost growth.
Economists said earlier this week that the chancellor could face a £10bn a year increase in debt interest payments due to a sharp rise in interest rates, potentially pushing him to break his own fiscal rules.
Treasury officials acknowledged that Reeves could be forced to act as early as March if skepticism in financial markets continues to push borrowing costs higher.
Economists said the chancellor could face an increase in debt interest payments of £10bn a year due to soaring interest rates (London skyline file image)
But in an unusual intervention, the Prime Minister’s spokesperson said his commitment to fiscal rules was “non-negotiable”.
If new economic forecasts released by the Office for Budget Responsibility (OBR) in March show Mr. Reeves is breaking his own rules, he won’t wait until the fall budget, people familiar with the matter said.
The source said the prime minister opposes further tax increases and borrowing, and has indicated that he plans to cut spending if market conditions continue, raising the possibility of a major debate within the cabinet over the scope of the cuts. There is.
Britain could be headed for a 1970s-style debt “nightmare”, experts said last night after the pound slumped against the dollar and government borrowing rates rose to a 27-year high. he warned.
There were also warnings that mortgage rates could be hit if the crisis continues to escalate.
