UK Spring Statement Cuts Welfare to Restore Fiscal Stability

Chancellor Rachel Reeves announces £4.8 billion in welfare cuts, sparking criticism over poverty impact as GDP growth forecast is halved for 2025.

The spring statement introduces £4.8 billion in welfare cuts, projected to affect three million families and push 250,000 people into relative poverty by 2029.
The Budget Responsibility (OBR) downgraded the 2025 GDP growth forecast from 2% to 1%, citing global uncertainty and domestic fiscal policies.
Chancellor Reeves restored £9.9 billion in fiscal headroom through welfare cuts, departmental spending reductions, and civil service reforms.
The government plans to build 1.3 million homes over five years, supported by a £2 billion grant for affordable housing, but falls short of its 1.5 million target.
Speculation grows over potential tax increases or further cuts, with Donald Trump’s proposed tariffs threatening to eliminate the fiscal headroom created by the statement.