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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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”.
The trial is part of Project Acacia, an initiative from the RBA exploring how digital money and tokenization could support financial markets in Australia.
Ex-Tory chairman Sir Jake Berry has defected to Reform, in the latest blow to the Conservatives.
The former MP for Rossendale and Darwen, who served as Northern Powerhouse minister under Boris Johnson and lost his seat last year, said he had defected to Nigel Farage’s party because the Tories had “lost their way”.
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Reform UK confirmed the defection to Sky News, which was first broken by The Sun.
Speaking to the paper, Sir Jake said Mr Farage’s party was the “last chance to pull Britain back from terminal decline”.
“Our streets are completely lawless,” he said.
“Migration is out of control. Taxes are going through the roof.
“And day after day, I hear from people in my community and beyond who say the same thing: ‘This isn’t the Britain I grew up in’.”
Sir Jake accused his former party of “abandoning the British people” but said he was not “giving up”.
“I’m staying. And I’m fighting.
“Fighting for the Britain I want my kids, and one day, my grandkids, to grow up in.”
Mr Farage welcomed what he said was “a very brave decision” by Sir Jake.
“His admission that the Conservative government he was part of broke the country is unprecedented and principled,” he added.
A Conservative Party spokesman said: “Reform support increasing the benefits bill by removing the two-child cap, and nationalising British industry. By contrast the Conservatives, under new leadership, will keep making the case for sound money, lower taxes and bringing the welfare bill under control.
“We wish Jake well in his new high spend, high tax party.”
Sir Jake’s defection to Reform comes just days after former Conservative cabinet minister David Jones joined Reform UK, which continues to lead in the polls.
Former Welsh secretary David Jones (R) alongside Tory MP Mark Francois. Pic: PA
Mr Jones, who was MP for Clwyd West from 2005 until standing down in 2024, said he had quit the Tories after “more than 50 years of continuous membership”.
Sir Jake was the MP Rossendale and Darwen in Lancashire between 2010 and 2024, when he was defeated by Labour’s Andy MacNae.
He held several ministerial posts including in the Department for Housing, Communities and Local Government, Energy and Climate Change and the Cabinet Office.
Nigel Farage after winning the Runcorn and Helsby by-election.
Pic: Reuters
He was also chairman of the Conservative Party from September to October 2022, under Liz Truss.
Announcing his defection – which comes a year after the Tories suffered their worst ever election defeat – Sir Jake said “Britain was broken” and “the Conservative governments I was part of share the blame”.
“We now have a tax system that punishes hard work and ambition,” he said.
“Just this week, we saw record numbers of our brightest and best people leaving Britain because they can’t see a future here. At the same time, our benefits system is pulling in the world’s poor with no plan for integration and no control over who comes in.
“If you were deliberately trying to wreck the country, you’d be hard-pressed to do a better job than the last two decades of Labour and Tory rule.
“Millions of people, just like me, want a country they can be proud of again. The only way we get that is with Reform in government. That’s why I’ve resigned from the Conservative Party. I’m now backing Reform UK and working to make them the next party of government.”
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He added: “And with Nigel Farage leading Reform, we’ve got someone the country can actually trust. He doesn’t change his views to fit the mood of the day. And people respect that. So do I. That’s why I believe he should be our next prime minister.”
A Labour Party spokesperson said: “Not content with taking advice from Liz Truss, Nigel Farage has now tempted her Tory Party chairman into his ranks.
“It’s clear Farage wants Liz Truss’s reckless economics, which crashed our economy and sent mortgages spiralling, to be Reform’s blueprint for Britain. It’s a recipe for disaster and working people would be left paying the price.”
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