Rachel Reeves to Announce New Spending Cuts in Spring Statement

Facing downgraded growth forecasts and rising borrowing costs, the UK chancellor will outline further welfare cuts and administrative savings to address a £1.6 billion budget shortfall.

• The Budget Responsibility (OBR) is expected to halve its 2025 growth forecast from 2% to 1%, citing global trade uncertainty and domestic economic stagnation.
• Rachel Reeves will announce additional welfare cuts, including freezing universal credit incapacity benefits for new claimants until 2030, to address a £1.6 billion savings shortfall.
• The government plans to cut administrative budgets across Whitehall departments by 15%, aiming to save £2.2 billion annually by 2029-30.
• A £2.2 billion increase in defense spending will be implemented starting in April, as part of a broader goal to raise defense expenditures to 2.5% of GDP by 2027.
• Reeves has pledged not to raise taxes in the Spring Statement, emphasizing spending cuts to adhere to fiscal rules requiring day-to-day expenses to be funded by tax revenues.

80 Articles

i The Independent The Times The Independent The Guardian Metro The Times Byline Times The Times POLITICO The Telegraph The Independent The Independent The Telegraph Semafor The Independent The Guardian POLITICO The Independent The Independent Sky News Sky News The Telegraph The Times The Telegraph The Guardian The Guardian The Independent The Independent The Independent The Telegraph The Guardian The Telegraph The Independent i CNBC The Times The Independent The Independent POLITICO The Telegraph The Guardian The Independent Metro The Telegraph The Guardian The Times The Independent i CNBC Metro The Independent The Independent The Independent The Independent i i The Telegraph The Guardian The Independent New Statesman The Telegraph i Byline Times The Independent The Telegraph The Independent i Sky News The Guardian The Independent The Telegraph The Independent The Independent New Statesman Sky News