Chancellor Reeves faces a diminished capacity to maneuver financially following the weakening of welfare reforms. This narrowing of 'wriggle room' presents significant challenges as she seeks to address pressing economic issues and implement her fiscal strategy. The watering down of key policy initiatives has reduced the options available to Reeves, potentially impacting her ability to deliver on promised financial improvements and navigate the current economic climate. Observers suggest this constraint will necessitate a recalibration of her approach and a renewed focus on alternative strategies to stabilize and strengthen government finances.