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.
Education Secretary Bridget Phillipson. Pic: NetStorage
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.
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What you need to know about the spring statement
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.
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Chancellor’s Spring Statement preview
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”.
Five Democratic lawmakers in the US Senate have called on leadership at regulatory agencies to consider the potential conflicts of interest from a stablecoin launched by World Liberty Financial (WLFI), the crypto firm backed by US President Donald Trump’s family.
In a March 28 letter from the US Senate Banking Committee, Massachusetts Senator Elizabeth Warren and four other Democrats asked the Federal Reserve’s committee chair on supervision and regulation, Michelle Bowman, and acting comptroller of the currency, Rodney Hood, how they intended to regulate WLFI and its stablecoin, USD1.
March 28 letter from five Democratic senators to OCC, Fed leadership. Source: US Senate Banking Committee
The letter came as members of Congress are considering legislation to regulate stablecoins through the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act. The bill, if signed into law, would essentially allow the Office of the Comptroller of the Currency (OCC) and Federal Reserve to oversee stablecoin regulation, including for issuers like WLFI and its USD1 coin.
Trump also signed an executive order in February attempting to have all federal agencies — purportedly including the OCC — “regularly consult with and coordinate policies and priorities” with White House officials, giving the US president unprecedented control.
“President Trump’s involvement in this venture, as he strips financial regulators of their independence and Congress simultaneously considers stablecoin legislation, presents an extraordinary conflict of interest that could create unprecedented risks to our financial system and to the integrity of decisions made by the [Fed and OCC],” said the letter, adding:
“The launch of a stablecoin directly tied to a sitting President who stands to benefit financially from the stablecoin’s success presents unprecedented risks to our financial system.”
Related: Trump’s USD1 stablecoin deepens concerns over conflicts of interest
Since World Liberty launched in September 2024 — months before the US election and Trump’s inauguration — many of the firm’s goals have been shrouded in secrecy. The project’s website notes that Trump and some of his family members control 60% of the company’s equity interests.
As of March 14, World Liberty had completed two public token sales, netting the company a combined $550 million. On March 24, the project confirmed launching its first stablecoin on the BNB Chain and Ethereum. The president’s son, Donald Trump Jr., also pitched USD1 from the DC Blockchain Summit on March 26 with three of WLFI’s co-founders.
Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
The Federal Deposit Insurance Corporation (FDIC) said in a March 28 letter that institutions under its oversight, including banks, can now engage in crypto-related activities without prior approval. The announcement comes as the Commodity Futures Trading Commission (CFTC) announced that digital asset derivatives wouldn’t be treated differently than any other derivatives.
The FDIC letter rescinds a previous instruction under former US President Joe Biden’s administration that required institutions to notify the agency before engaging in crypto-related activities. According to the FDIC’s definition:
”Crypto-related activities include, but are not limited to, acting as crypto-asset custodians; maintaining stablecoin reserves; issuing crypto and other digital assets; acting as market makers or exchange or redemption agents; participating in blockchain- and distributed ledger-based settlement or payment systems, including performing node functions; as well as related activities such as finder activities and lending.”
FDIC-supervised institutions should consider associated risks when engaging in crypto-related activities, it said. These risks include market and liquidity risks, operational and cybersecurity risks, consumer protection requirements, and Anti-Money Laundering requirements.
On March 25, the FDIC eliminated the “reputational risk” category from bank exams, opening a path for banks to work with digital assets. Reputational risk is a term that underscores the dangers banks face when engaging with certain industries.
Related: FDIC resists transparency on Operation Chokepoint 2.0 — Coinbase CLO
Digital asset derivatives won’t be treated differently — CFTC
While the US crypto derivatives market had been a gray zone due to regulatory uncertainty, that has been changing. On March 28, the CFTC withdrew a staff advisory letter to ensure that digital asset derivatives — a type of trading product — will not be treated differently from other types of derivatives. The revision is “effective immediately.”
The change in tone from the CFTC and FDIC follows a new environment for crypto firms under US President Donald Trump’s administration. Trump has vowed to make the US “the crypto capital of the planet.”
Crypto firms are shifting strategies to align with the easing regulatory climate. On March 10, Coinbase announced the offer of 24/7 Bitcoin (BTC) and Ether (ETH) futures. In addition, the company is reportedly planning to acquire Derebit, a crypto derivatives exchange.
Kraken, another US-based cryptocurrency exchange, has also made moves in the derivatives market. On March 20, it announced the acquisition of NinjaTrader, which would allow the exchange to offer crypto futures and derivatives in the United States.
Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
US President Donald Trump reportedly issued pardons to three co-founders of the cryptocurrency exchange BitMEX, who had pleaded guilty to felony charges.
According to a March 28 CNBC report, Trump granted pardons to Arthur Hayes, Benjamin Delo and Samuel Reed, who were facing a range of criminal charges related to money laundering or violations of the Bank Secrecy Act. Hayes and Delo pleaded guilty in February 2022, admitting they “willfully fail[ed] to establish, implement and maintain an Anti-Money Laundering program” at BitMEX, while Reed entered a plea a few weeks later.
Source: Arthur Hayes
At the time of publication, the White House had not released a statement suggesting that Trump planned to pardon the three men. Cointelegraph contacted BitMEX for a comment regarding the pardon, but did not receive a response at the time of publication.
Since taking office on Jan. 20, Trump has issued a number of controversial federal pardons, including to more than 1,500 people facing charges related to the Jan. 6, 2021, rioting at the US Capitol and Silk Road founder Ross Ulbricht, who was in prison for more than 11 years. Reports have suggested that former FTX CEO Sam Bankman-Fried, sentenced to 25 years in prison for his role in misusing customer funds, was also attempting to cozy up to Trump and Republicans for a potential pardon.
Related: Changpeng Zhao says he ‘wouldn’t mind a pardon’ from Donald Trump
US authorities charged Delo, Reed, Hayes, and Gregory Dwyer — the exchange’s first employee — in 2020 with violations of the Bank Secrecy Act. Hayes, BitMEX’s then-CEO, stepped down from his role amid the legal battle.
The reasons for Trump’s pardon were unclear at the time of publication, as the three men had already been sentenced to a combination of home arrest or probation in 2022. The BitMEX co-founders were also ordered to pay $30 million in penalties as part of a civil case with the US Commodity Futures Trading Commission (CFTC).
The exchange’s cases with US authorities included an agreement to pay $100 million in consent payments to both the CFTC and the US Financial Crimes Enforcement Center in 2021. In January, a judge imposed a $100 million fine and two years of unsupervised probation on HDR Global Trading Limited, BitMEX’s parent company.
Magazine: Meet lawyer Max Burwick — ‘The ambulance chaser of crypto’
This is a developing story, and further information will be added as it becomes available.
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