Wed, 26 Mar 2025

Wed, 26 Mar 2025 Reeves to make new welfare cuts in Spring Statement

The chancellor will warn of a "changing world" as she sets out the latest plans for the economy.

* Chancellor Rachel Reeves will announce further cuts to welfare benefits, including stricter tests for personal independence payments (Pip) affecting hundreds of thousands of claimants.
* The government is expected to cut administrative budgets by 15% across Civil Service departments.
* There will be a £2.2bn increase in defence spending, with funding invested in advanced technologies and infrastructure upgrades at Naval Base Portsmouth.
* The chancellor will confirm plans for affordable homes in England, with £2bn of funding announced.
* Reeves has ruled out tax rises and will argue that the UK needs to "move quickly in a changing world" to boost economic growth.
* The government's fiscal rules are under pressure due to low economic growth and higher interest rates on government borrowing.
* The Office for Budget Responsibility is expected to lower its growth expectations for the UK, with the economy growing at just 0.1% between October and December 2024.
* Businesses may pass on increased costs to consumers through higher prices due to minimum wage rate increases and National Insurance contributions paid by employers going up in April.
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