Biggest cuts since austerity era as Reeves tries to plug budget deficit

Rachel Reeves will announce the biggest spending cuts since austerity at next week's spring statement after ruling out tax rises as a way to close the budget deficit.

- Kiran Stacey, Pippa Crerar, Jessica Elgot

The chancellor will tell MPs today that she intends to cut Whitehall budgets by billions more than expected in a move that could mean reductions of 7% for certain departments over the next four years.

Economists say the cuts will harm key public services despite Labour's promises to undo years of decline under the Conservatives. They will be announced a week after ministers revealed £5bn worth of cuts to benefit payments, most of which was taken from payments to disabled people.

Analysis by the Resolution Foundation thinktank found that some disabled people could lose nearly £10,000 a year in benefits by the end of the decade under the controversial changes announced on Tuesday.

Labour MPs are concerned next week's additional cuts will put more pressure on the poorest families.

A Whitehall source said: "The government has been clear that departments will have to find more efficiencies. That is why Wes Streeting [the health secretary] has cut NHS England, that is why Liz Kendall [the work and pensions secretary] has made reductions to welfare payments."

Another said: "I don't know how much longer we can go on pretending this is not austerity, when the reality is we're making cuts to vital public services such as police and prisons."