Sun, 09 Mar 2025

Sun, 09 Mar 2025 What will be in the chancellor's Spring Statement?

Chancellor Rachel Reeves will give more detail about the government's plans for the economy.

* Chancellor Rachel Reeves will give an update on her plans for the UK economy in a statement alongside the Office for Budget Responsibility's (OBR) forecast on March 26.
* The OBR's forecast is expected to confirm that the £9.9bn financial buffer has been wiped out, leaving Reeves facing difficult choices due to the underperforming UK economy and global factors.
* Reeves has ruled out further tax rises but faces pressure to break her self-imposed rules on borrowing.
* The Treasury has drafted plans for several billion pounds of spending cuts, with welfare spending in the firing line.
* Possible announcements include extending the freeze on income tax thresholds, which would raise around £7bn a year.
* The UK economy grew by just 0.1% between October and December 2024, while prices are rising faster than wanted, with an inflation rate of 3%.
* Higher interest rates could be on the horizon due to high inflation, which would increase borrowing costs for consumers and businesses.
* Reeves' tax and spending plans have been under pressure after a surplus in government finances missed official forecasts.
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