A minister has denied Labour is a “centre right” government following cuts to disability benefits and foreign aid.
Luke Pollard told Sky News Breakfast with Wilfred Frost that welfare reforms announced this week would get more people back to work, while reducing the overseas aid budget would create more money for defence.
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It comes ahead of Chancellor Rachel Reeves’ spring statement next week, when further spending cuts are expected in order to balance the books amid poor economic growth.
Asked if Labour is “now the government of the centre right”, defence minister Mr Pollard said: “No I don’t think so, and it’s wrong for me to speculate what might be in the spring statement next week.
“But we’ve been very clear that, by taking the difficult decision to reduce international aid spending, we’re moving that money to defence.
“The changes we are seeking to make to welfare is not to fund defence spending. It’s to help people back into work.”
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Benefits cuts explained
‘This is not about morality’
The welfare reforms will make it harder to qualify for personal independence payments (PIP) while preventing under-22s from claiming health top-ups on universal credit.
The government is yet to publish an impact assessment, but experts believe around one million people will lose their benefits as a result.
It is the latest measure to anger MPs on the left of Labour, following the cut to the international aid budget, the scrapping of the universal winter fuel allowance, and refusal to drop the two-child benefit cap.
At PMQs on Wednesday, Diane Abbott challenged Sir Keir Starmer’s assertion there is a “moral” need for change as too many young people are unemployed.
She said: “This is not about morality, this is about the Treasury’s wish to balance the country’s books on the back of the most vulnerable and poor people in this society.”
However, it’s not just the usually outspoken backbenchers making noise.
Read more:
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Minister denies misleading voters over cuts
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What’s the impact of aid cut?
All eyes on the spring statement
In a sign of growing discontent, Chris Web, the newly elected MP for Blackpool South, became the first of the 2024 cohort to break ranks, telling Sky News the cuts were “not what any of us stood on in the manifesto”.
While Labour’s manifesto did promise welfare reform to get more people into work, it did not mention cuts, with the package announced on Tuesday aimed at saving £5bn by 2029.
Ministers have insisted they would have announced these measures regardless of the fiscal situation, but the timing has aroused suspicion given Ms Reeves’ spring statement next Wednesday.
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What to expect from the spring statement
Having only committed to holding one budget a year in the autumn, this was meant to be a low-key affair.
However, a turbulent economic climate since October means the £9.9bn gap in her fiscal headroom (the amount she could increase spending or cut taxes without breaking her fiscal rules) has been wiped out, and further spending cuts are expected.
