Cut back grass bordering ditch (10)

I believe the answer is:

retrenched

'cut back' is the definition.
(to retrench is to reduce spending)

'grass bordering ditch' is the wordplay.
'grass' becomes 'reed' (I've seen this before).
'bordering' means one lot of letters goes inside another.
'ditch' becomes 'trench' (trench is a kind of ditch**).
'reed' placed around 'trench' is 'RETRENCHED'.

I've seen this clue in The Times.

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