UK Chancellor Warns of Difficult Decisions Ahead in Budget

UK Chancellor Rachel Reeves has told the BBC that next month’s Budget will involve difficult decisions on tax, spending and welfare.

The new chancellor has faced mounting criticism after cutting Winter Fuel Payments for all but the poorest pensioners.

But she said it was the right decision and there were further tough decisions to come.

Her warning comes as new figures show the UK economy failed to grow in July, after flat lining in June.

The July figure is a knock-back for the new government, which has named boosting the economy as one of its key priorities.

Reeves tried to paint a positive picture for future growth, but warned of the need for further belt-tightening this autumn.