Labour Faces Backlash Over Spring Statement’s Spending Cuts and Downgraded Growth Forecasts

Chancellor Rachel Reeves announces £14 billion in spending cuts and welfare reforms as the UK grapples with record borrowing, inflation, and a downgraded economic outlook.

• The Spring Statement includes £14 billion in spending cuts and welfare reforms, with details on specific cuts remaining unclear.
• The Office for Budget Responsibility halved the UK's 2025 growth forecast from 2% to 1%, citing fiscal policies and external pressures.
• The UK's tax burden is at a 70-year high, with recent tax increases criticized for stifling economic growth and investment.
• Debt interest payments are projected to rise sharply, reaching £131.6 billion annually by 2029-2030, surpassing spending on key public services.
• Labour's strategy to reduce economic inactivity aims to bring two million people back into the workforce, with mixed responses on its feasibility.

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