Chancellor’s latest cuts to consumers’ pockets (8)
I believe the answer is:
trousers
'pockets' is the definition.
(I've seen this before)
'chancellor's latest cuts to consumers'' is the wordplay.
'latest' indicates one should take the final letters.
'cuts' is an insertion indicator (some letters cut their way into other letters).
'consumers'' becomes 'users' (user is a kind of consumer).
The final letter of 'chancellor' is 'r'.
'r' placed within 'to' is 'tro'.
'tro'+'users'='TROUSERS'
(Other definitions for trousers that I've seen before include "One may be caught with them down" , "Outer garment" , "Pants" , "Corduroys or chinos" , "Slacks" .)