Wed, 05 Mar 2025

Wed, 05 Mar 2025 Treasury earmarks billions in spending cuts

Cuts to areas including welfare will be put to the official forecaster ahead of the Spring Statement.

* The Treasury has proposed £billion in cuts to welfare and other government departments.
* The Office of Budget Responsibility (OBR) will publish a revised forecast that shows the UK's public finances have deteriorated since last year's budget.
* Global economic headwinds, including a stagnating euro area economy and lower UK productivity numbers, are to blame for the worsening financial situation.
* Chancellor Rachel Reeves is set to unveil "major measures" to put the public finances back on track, which will include tax and spend changes.
* The government expects to make "politically painful" welfare cuts, particularly in health-related benefits, as part of its plan to reduce borrowing costs.
* A significant efficiency drive within the civil service is also planned, aiming to lead to headcount and cost savings.
* Chancellor Reeves claims that these measures are necessary to make Britain more secure and prosperous.
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