The government may be planning to cut public services. But there is an alternative

The Chancellor’s spring statement in March is the next big event in the UK’s political calendar.

This is a similar event to the Budget, but smaller. It’s when Rachel Reeves will set out more of the government’s tax and spending plans.

From our contacts in politics and other organisations, we’re hearing that the government is looking at cutting public spending and potentially raising taxes in the spring statement.

Sources suggest that the Chancellor is asking some government departments to model punishing cuts of up to 10%.

Cuts are not the solution

The government will argue they’re in a tricky financial position – growth hasn’t picked up noticeably, as they’d hoped, and interest on public debt has risen – but cuts are not the solution.

Public services are on their knees. Another round of austerity would be incredibly damaging to everyone in the UK.

The government has other options. They could raise taxes on the super rich – and close loopholes exploited by wealthy corporations.

Implementing our tax reform proposals could raise billions a year, making cuts to public spending unnecessary.

We’re in Parliament and in the media arguing that this is a path open to the government.

Good news from Italy

Last week, the Pope, the President of Brazil and the Prime Minister of Spain called for international tax reform to protect democracy from extreme wealth.

At a meeting in the Vatican, the leaders backed plans for a United Nations Tax Convention – a new body that will crack down on international tax evasion by big companies and the ultra rich.

“The question before us is simple: do we govern global taxation or do we let the wealthiest few govern us?”, Spain’s Prime Minister Pedro Sanchez said at the meeting.

The UN Tax Convention hasn’t been established yet but negotiations are now ongoing until 2027. Creating a strong convention relies on world leaders uniting behind it.

So it’s an incredibly big step to see major world leaders from Spain and Brazil – and the head of the Catholic Church – so vocally championing it.

At Tax Justice UK we’ve been building a movement of UK-based groups who support the UN Tax Convention. This is a big step in the right direction.