Rachel Reeves has pushed back at suggestions ministers are considering ending universal free school meals for primary school children.
The chancellor said she did not “recognise” reports in The Times that Bridget Phillipson, the education secretary, had suggested making free school meals for younger pupils means tested instead of universal, as is the case for older children.
Currently, all children in reception, year one and year two are entitled to free school meals, but according to the newspaper, Ms Phillipson made the recommendation as part of a package to reduce school spending by £500m.
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A source close to Ms Phillipson told Sky News the reports were “complete rubbish” while the chancellor pointed to the government’s decision to roll out free breakfast clubs in all primary schools from April.
Ms Reeves told broadcasters: “This government is rolling out free breakfast clubs in all primary schools from April.
“I don’t recognise those claims that the government are looking at means-testing free school meals.
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“In fact, this government are ensuring that all children get a good start to the day with a breakfast club, helping working parents and helping all children get a good start in life.
“That is what this government is determined to do after 14 years of Conservative failure.”
On Wednesday the chancellor is expected to deliver a spring statement that sets out savings of around £10bn, including the £5bn of welfare savings announced last week.
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Ms Reeves has also confirmed the civil service will be forced to cut £2bn a year by slashing administration costs by the end of the decade – although the savings will be used to protect frontline services from cutbacks.
The proposed cuts follow a speech by the prime minister in which he announced the abolition of NHS England, the administrative body that runs the national health service, in a bid to slash red tape and cut costs.
Today Sir Keir Starmer said the government was “looking across the board” at making cuts to unprotected departmental budgets.
“We’re not going to alter the basics, but we are going to look across and one of the areas that we will be looking at is: can we run the government more efficiently?” he told the BBC.
As well as suggestions that free school meals could be curtailed, The Times also said Ms Phillipson had offered to stop funding for free period products in schools as well as dance, music and PE schemes.
The source close to Ms Phillipson also denied those claims, saying: “It’s no secret that there are some tough choices coming down the track – but if people don’t think Bridget is going to fight tooth and nail to protect programmes that support the most disadvantaged children, they don’t know Bridget very well.
“Any suggestions those things are being ‘offered up’ is complete rubbish.”
At the same time, Ms Reeves has drawn criticism for hinting she could abolish or slash the digital services tax paid by tech companies while reducing benefits for ill and disabled people.
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The levy, introduced in 2020 under former Conservative prime minister Rishi Sunak, ensures that digital companies with global sales exceeding £500m and with at least £25m worth of UK sales pay a tax of 2% on those UK sales.
Liberal Democrat leader Sir Ed Davey said changing the policy would amount to “appeasement” of Donald Trump following reports the government could alter or abandon the tax in a bid to avoid punitive US tariffs.
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Asked if the government was also considering abolishing or slashing the digital services tax paid by tech companies, Ms Reeves said: “Digital services tax is hugely important, it brings in around £800m a year and ensures that companies pay tax in the country that they are operating in.
“So we will continue to make sure that businesses pay their fair share of tax, including businesses in the digital sector.”
Addressing the cuts that are expected in Wednesday’s spring statement, the prime minister’s official spokesperson said: “The whole cabinet is focused on delivering high quality public services.
“This is shown in fixing the NHS and giving our kids the best opportunities and doing it to give taxpayers the best value for money.”
Turning to the suggestions the digital services tax could be axed, the spokesman added the UK would only do a deal with the US that was “in this country’s national interest”.
