British Chancellor John McDonnell has dismissed Theresa May 's claim that austerity is coming to an end , saying the claim " lacked credibility " . After the prime minister used her conference call in London to signal the UK was on the brink of ending its period of economic restraint , he pointed to severe shortfalls in local council budgets and withdrawal of children 's services to contradict her claim . pay rises in the public sector. He also referred to a report from the Institute for Fiscal Studies which said that 75 % of this year 's planned welfare cuts had yet to come into effect .
British Chancellor John McDonnell has dismissed Theresa May 's claim that austerity is coming to an end , saying the claim " lacked credibility " . After the prime minister used her conference call in London to signal the UK was on the brink of ending its period of economic restraint , he pointed to severe shortfalls in local council budgets and withdrawal of children 's services to contradict her claim . He also referred to a report from the Institute for Fiscal Studies which said that 75 % of this year 's planned welfare cuts had yet to come into effect .