Treasury asking ministers to draw up billions of pounds of infrastructure cuts

Rachel Reeves has called for the Treasury to count the benefits as well as costs of economic investment, but her officials say short-term cuts are necessary. Photograph: Jordan Pettitt/PA

Ministers are being asked to draw up billions of pounds in cuts to infrastructure projects over the next 18 months despite Rachel Reeves pledging to invest more to grow the economy, the Guardian has learned.

Members of the cabinet have been asked to model cuts to their investment plans of up to 10% of their annual capital spending as part of this month’s spending review, government sources said.