Rachel Reeves is coming out fighting as she prepares to unveil billions in cuts

Published

2 days ago

March 23, 2025

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In recent months, the chancellor has become a lightning rod for criticism.

She been accused of ushering in a new era of austerity and channelling George Osborne with governments cuts to welfare, winter fuel and international aid.

She’s been described as a new Liz Truss, with her focus on growth and tearing up regulation.

She’s been urged to hike taxes for the wealthy by left-wing Labour MPs.

She’s been under pressure to loosen her self-imposed fiscal rules – even Lord Blunkett, the former Labour home secretary, has called on her to allow more government borrowing.

As for the Tories, they claim she’s facing a crisis of her own making after trash-talking the economy and damaging business confidence by hiking national insurance on employers.

But if the pressure is taking its toll on Rachel Reeves, it didn’t show this morning.

She breezed into the Sky News Westminster studio for her interview on Sunday Morning With Trevor Phillips and positively beamed when he asked about the Office for Budget Responsibility (OBR) preparing to slash its growth forecasts, reportedly by as much as half, and the severity of the country’s financial situation.

She insisted the “world has changed” since her October budget and said the government is responding through greater investment in defence and security.

The chancellor has clearly decided to come out fighting.

She’s wedded to her fiscal rules, she’s sticking to her promise not to cut taxes, and determinedly standing by the decisions she took in the October budget.

“I promised at the general election to bring stability back to the economy – and as a result of that stability, interest rates have been cut three times since the general election,” she said.

“That’s only been possible because we put our public finances on a firm footing, and we’ve also put our public services on a firm footing.”

There was no real acknowledgement that cuts in interest rates have now stalled and economic growth is flatlining.

She brushed off the prospect of a more negative outlook by deferring again and again to the as-yet-unpublished OBR forecast.

“I know that we need to go further and faster in delivering economic growth and seeing public services improve – but there are no shortcuts here,” she said. “It’s not possible within just a few months to reverse more than a decade of economic stagnation, but we are making the changes that are necessary to bring money into the economy.”

It’s clearly part of the chancellor’s job to talk up the economy they’re responsible for. But the strategy here was to show no hint of weakness.

The spring statement is already done and dusted as it had to be submitted to the OBR last week for its forecasts to be prepared and printed.

So there’s no way back now on the likely cuts to come.

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We’re expecting the chancellor to set out savings of around £10bn, including the £5bn of welfare savings announced last week.

Today she confirmed the civil service will be forced to cut £2bn a year by slashing administration costs by the end of the decade – although the savings will be used to protect frontline services from cutbacks.

She told me people who were describing the event as an emergency budget – which implies tax changes – are going to look “very silly” when they hear what she’s got to say on Wednesday.

That’s a dig at shadow chancellor Mel Stride and the Tories, who’ve been doing their best to make the “emergency budget” moniker stick.

You’d think they might want to avoid reminding people of the last emergency budget, which was Jeremy Hunt’s effort to clean up the shrapnel left behind by Liz Truss’s mini budget implosion.

But for Rachel Reeves, it’s an ever-present reminder of what can go wrong.

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Arizona’s strategic crypto reserve bills heads for full floor vote

Published

13 hours ago

March 25, 2025

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Arizona’s strategic crypto reserve bills heads for full floor vote

Two strategic digital asset reserve bills in Arizona cleared Arizona’s House Rules Committee on March 24 and are now headed to the House floor for a full vote.

The bills together, if passed into law, would clear the way for Arizona to establish strategic digital assets reserves composed of existing assets confiscated through criminal proceedings in addition to newly invested public funds.

The Republicans hold a 33-27 majority in Arizona’s House of Representatives, giving both bills a decent chance of passing.

However, according to Bitcoin Laws, the final hurdle could be the state’s Democratic governor, Katie Hobbs. Hobbs has a history of vetoing bills before the House, having blocked 22% of bills in 2024 — the highest rate of any state governor.

Arizona’s two crypto bills explained

The two bills recently approved by Arizona’s House Rules Committee are the Strategic Digital Assets Reserve Bill (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025).

The Strategic Digital Assets Reserve Bill (SB 1373) focuses on establishing a strategic digital assets reserve made up of digital assets seized through criminal proceedings to be managed by the state’s treasurer.

The treasurer would be limited to investing no more than 10% of the fund’s total value each fiscal year. However, they would also be able to loan the fund’s assets in order to increase returns, provided that doing so doesn’t increase financial risks.

The Arizona Strategic Bitcoin Reserve Act (SB 1025) specifically deals with Bitcoin (BTC). The bill proposes allowing Arizona’s Treasury and state retirement system to invest up to 10% of its available funds into Bitcoin.

Additionally, SB 1025 would also allow for the state’s Bitcoin reserve to be stored in a secure, segregated account inside a federal Bitcoin reserve, should one be established.

While Arizona is now considered to be leading the race to establish a state-based digital asset reserve, several other states are hot on its heels.

On March 6, the Texas Senate passed the Strategic Bitcoin Reserve Bill (SB-21) by a vote of 25-5. The Texan bill still needs to pass the House and get the governor’s signature to pass into law. Following this vote, a new bill was introduced by Democrat Representative Ron Reynolds to cap the size of the previously uncapped reserve to $250 million.

Utah also recently passed Bitcoin legislation, but all references to the establishment of a strategic reserve were removed at the last moment.

Meanwhile, the Oklahoma House passed its Bitcoin Reserve Bill HB1203, 77-15 on March 25. That bill will now head to the state’s senate.

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Massachusetts subpoenas Robinhood over sports prediction markets

Published

13 hours ago

March 25, 2025

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Massachusetts subpoenas Robinhood over sports prediction markets

Massachusetts’ securities regulator has reportedly launched a probe over Robinhood’s prediction markets offering that has allowed users to bet on the outcomes for a slew of events, including basketball tournaments.

Reuters reported on March 24 that Massachusetts Secretary of State Bill Galvin said his office subpoenaed Robinhood last week to get information on its marketing materials and the number of Massachusetts-based users that traded sports events contracts on college basketball tournaments.

Galvin said he was concerned the trading platform was “linking a gambling event on a popular sports event that’s especially popular to young people to a brokerage account.”

“This is just another gimmick from a company that’s very good at gimmicks to lure investors away from sound investing,” he added.

Robinhood launched a prediction markets hub on March 17 that would be initially available through the Commodity Futures Trading Commission-regulated prediction platform Kalshi and would feature event contracts on college basketball tournaments and the May federal funds rate.

A Robinhood spokesperson told Cointelegraph that the event contracts “are regulated by the CFTC and offered through CFTC-registered entities.”

“Prediction markets have become increasingly relevant for retail and institutional investors alike, and we’re proud to be one of the first platforms to offer these products to retail customers in a safe and regulated manner,” the spokesperson said.

Robinhood Markets (HOOD) share price remained relatively flat after the close of trading on March 24 after an over 9% jump over the day to close at $48.36, according to Google Finance.

The CFTC and Galvin’s office did not immediately respond to requests for comment.

Event contracts are agreements that allow users to bet on the outcome of essentially anything, from sports games to election outcomes and the price of cryptocurrencies.

They were popularized on the blockchain-based prediction market Polymarket and non-decentralized rival Kalshi and have caught the ire of some regulators.

Last month, Robinhood scrapped event contracts allowing for bets on the Super Bowl a day after launching the products after the CFTC asked it to.

The Massachusetts probe also requested Robinhood hand over internal communications about the decision to roll out the recent college basketball events contracts after the CFTC’s request to stop the Super Bowl contracts.

The CFTC also reportedly asked Kalshi and Crypto.com early last month to explain how both of their Super Bowl event contracts complied with derivatives regulations.

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Rachel Reeves dismisses reports universal free school meals could be axed in cost-cutting drive

Published

15 hours ago

March 25, 2025

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Rachel Reeves dismisses reports universal free school meals could be axed in cost-cutting drive

Rachel Reeves has pushed back at suggestions ministers are considering ending universal free school meals for primary school children.

The chancellor said she did not “recognise” reports in The Times that Bridget Phillipson, the education secretary, had suggested making free school meals for younger pupils means tested instead of universal, as is the case for older children.

Currently, all children in reception, year one and year two are entitled to free school meals, but according to the newspaper, Ms Phillipson made the recommendation as part of a package to reduce school spending by £500m.

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A source close to Ms Phillipson told Sky News the reports were “complete rubbish” while the chancellor pointed to the government’s decision to roll out free breakfast clubs in all primary schools from April.

Ms Reeves told broadcasters: “This government is rolling out free breakfast clubs in all primary schools from April.

“I don’t recognise those claims that the government are looking at means-testing free school meals.

“In fact, this government are ensuring that all children get a good start to the day with a breakfast club, helping working parents and helping all children get a good start in life.

“That is what this government is determined to do after 14 years of Conservative failure.”

On Wednesday the chancellor is expected to deliver a spring statement that sets out savings of around £10bn, including the £5bn of welfare savings announced last week.

Ms Reeves has also confirmed the civil service will be forced to cut £2bn a year by slashing administration costs by the end of the decade – although the savings will be used to protect frontline services from cutbacks.

The proposed cuts follow a speech by the prime minister in which he announced the abolition of NHS England, the administrative body that runs the national health service, in a bid to slash red tape and cut costs.

Today Sir Keir Starmer said the government was “looking across the board” at making cuts to unprotected departmental budgets.

“We’re not going to alter the basics, but we are going to look across and one of the areas that we will be looking at is: can we run the government more efficiently?” he told the BBC.

As well as suggestions that free school meals could be curtailed, The Times also said Ms Phillipson had offered to stop funding for free period products in schools as well as dance, music and PE schemes.

The source close to Ms Phillipson also denied those claims, saying: “It’s no secret that there are some tough choices coming down the track – but if people don’t think Bridget is going to fight tooth and nail to protect programmes that support the most disadvantaged children, they don’t know Bridget very well.

“Any suggestions those things are being ‘offered up’ is complete rubbish.”

At the same time, Ms Reeves has drawn criticism for hinting she could abolish or slash the digital services tax paid by tech companies while reducing benefits for ill and disabled people.

The levy, introduced in 2020 under former Conservative prime minister Rishi Sunak, ensures that digital companies with global sales exceeding £500m and with at least £25m worth of UK sales pay a tax of 2% on those UK sales.

Liberal Democrat leader Sir Ed Davey said changing the policy would amount to “appeasement” of Donald Trump following reports the government could alter or abandon the tax in a bid to avoid punitive US tariffs.

Asked if the government was also considering abolishing or slashing the digital services tax paid by tech companies, Ms Reeves said: “Digital services tax is hugely important, it brings in around £800m a year and ensures that companies pay tax in the country that they are operating in.

“So we will continue to make sure that businesses pay their fair share of tax, including businesses in the digital sector.”

Addressing the cuts that are expected in Wednesday’s spring statement, the prime minister’s official spokesperson said: “The whole cabinet is focused on delivering high quality public services.

“This is shown in fixing the NHS and giving our kids the best opportunities and doing it to give taxpayers the best value for money.”

Turning to the suggestions the digital services tax could be axed, the spokesman added the UK would only do a deal with the US that was “in this country’s national interest”.