A simple solution to Rachel Reeves’ spending cuts? Stop subsidising the banks | Larry Eliott

A simple solution to Rachel Reeves’ spending cuts? Stop subsidising the banks | Larry Eliott

A £22bn ‘black hole’ could be filled overnight if Labour stopped paying unnecessarily high interest on balances at Threadneedle Street

Well that didn’t take long. Less than a month after becoming chancellor Rachel Reeves has gone native at the Treasury, putting a red pencil to plans for new hospitals, roads and rail projects that the government says it can’t afford.

The latest to bite the dust is the £800m for an exascale supercomputer at the University of Edinburgh and a further £500m for the AI Research Resource, which funds computing power for AI.

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