The new Labour government in the UK is gearing up for its next budget, which will feature significant public spending cuts under the leadership of Chancellor Rachel Reeves, the first female to hold the position.

Currently, the government is grappling with a £22 billion budget shortfall, exacerbated by the recent decision to end universal winter fuel allowance payments, leaving an additional £16 billion to be cut.

Last month, Reeves surprised many by eliminating winter fuel support for pensioners as part of her strategy to address this substantial spending gap.

In her first budget, Reeves plans to set departmental budgets for this year and next, while also implementing a spending review that will define financial allocations across various ministries.

To tackle the financial challenges, Reeves has initiated a review of public spending, instructing cabinet ministers to identify cost-cutting reforms.

Darren Jones, from Reeves' office, has reached out to cabinet members, urging them to find reforms and leverage technology to achieve savings.

A Treasury spokesperson confirmed that the spending review process has commenced, focusing on rebuilding Britain and enhancing national prosperity.

Reeves has indicated that without significant changes, current spending plans may violate Labour's fiscal rules, as she aims for a balanced budget and reduced debt over the next five years.

The Chancellor has signaled plans to raise taxes and make difficult decisions regarding social security and spending, marking a crucial autumn for the new Labour government.

Potential tax increases under consideration include adjustments to capital gains tax, pension contribution relief, and inheritance tax.

In addition to the £22 billion gap, Reeves will need to implement further cuts to balance the UK's accounts for the current year.

All spending requests will be evaluated based on their alignment with government priorities, which include reducing NHS waiting lists and enhancing border security.