The Chancellor warned there would be “costs to what happened”, as she faced questions about how she would cover a shortfall left by the Downing Street climbdown on planned cuts to disability benefits. The fallout threatens to cause lasting damage to morale in Labour ranks, with some MPs calling for a reset in relations between the parliamentary party and the leadership before fractures widen. Ms Reeves added: “It’s been damaging. Ms Reeves is said to have already told ministers that the decision to water down the welfare package means taxes will rise in the autumn. Prime Minister Sir Keir Starmer has said the Government is still committed to welfare reform, but ministers will now wait for the conclusions of the Timms review before implementing changes to Pip.

Source: The Times July 05, 2025 08:34 UTC