Rachel Reeves is set to announce a £2.2 billion boost to defence spending over the next year in her spring statement.
The Chancellor is expected to tell the Commons that the UK must “move quickly in a changing world” to up its defence commitment, as she delivers an update on her plans for the economy on Wednesday.
She will tell MPs: “This increase in investment is not just about increasing our national security but increasing our economic security, too. As defence spending rises, I want the whole country to feel the benefits.”
However, the Chancellor is also reportedly set to announce further cuts to benefits on Wednesday.
According to The Times, the Office for Budget Responsibility (OBR) rejected the government’s claim that £5 billion would be saved from planned welfare reforms.
The watchdog reportedly told ministers it would only save £3.4 billion - leaving a £1.6 billion gap.
The newspaper reported that Ms Reeves will set out about £500 million of further welfare savings to the unease of Labour backbenchers.
The Independent has contacted the Treasury for a comment.
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Key Points
- Reeves to announce extra £2.2bn defence spending in spring statement
- Rachel Reeves to announce further welfare cuts - reports
- Poll reveals collapse in confidence in Labour’s handing of the economy
- Ex-Reform MP ‘unlawfully harassed’ two women, inquiry finds
Watch: What to expect from Rachel Reeves' spring statement
05:00
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Athena Stavrou
Wealth tax almost impossible to implement, leading economist warns
04:01
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Athena Stavrou
One of Britain’s leading economists has warned a wealth tax would be almost impossible to implement, despite growing support for the policy in the wake of the benefits cuts unveiled by the government last week.
Paul Johnson, the director of the Institute for Fiscal Studies (IFS), warned that “no country in the world has ever successfully had a wealth tax that’s raised serious money”, saying the levy poses significant administrative problems.
It comes as new polling shows the British public overwhelmingly support such a tax, while a growing number of Labour MPs have urged the government to introduce it instead of making spending cuts.
Millie Cooke reports:
EU cares more about fish than Europe’s collective defence, says ex-Brexit aide
03:00
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Athena Stavrou
The EU “cares more about fish than Europe’s collective defence”, a former leading adviser on Brexit told Parliament.
Lord Jackson of Peterborough, who was chief of staff for David Davis as Brexit secretary, slammed the EU for apparently insisting on securing a deal on access to British fishing waters ahead of any defence agreement.
The Conservative peer said: “The EU has apparently taken the decision to shut the UK out of their 150 billion euro defence (£126 billion) fund unless we acquiesce on a new fishing agreement.
“Clearly the Macron administration and the EU seem to care more about fish than our collective defence.”
‘If I want to go to a concert I’ll pay for it’: Minister heaps pressure on Reeves over Sabrina Carpenter tickets
02:03
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Athena Stavrou
A minister has heaped more pressure on Rachel Reeves over her decision to accept free tickets to see Sabrina Carpenter perform at the O2, saying he does not “personally think it’s appropriate”.
The chancellor had faced criticism for attending the show earlier this year ahead of imposing sweeping cuts to spending, including the benefits bill, as she seeks to balance the books – with critics arguing the gifts are an insult to the public during an ongoing cost of living crisis.
The latest saga threatens to reignite the freebies row that engulfed the government last year after a number of cabinet ministers, including the prime minister, accepted tickets to the Taylor Swift Era’s tour, at a total value of more than £23,000.
What would you like to see from Rachel Reeves’ spring statement? Join The Independent Debate
01:00
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Athena Stavrou
Have your say: The chancellor’s spring statement is just around the corner, bringing with it new concerns about the future of living standards in the UK
Two in three parents support Ofsted’s proposed report cards for schools – poll
00:02
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Athena Stavrou
More than two in three parents prefer Ofsted’s proposed report cards for schools over current inspection reports, a survey has suggested.
The majority of parents said the report cards were easy to understand (86%) and they found the use of colour coding to grade schools helpful (84%), according to the poll commissioned by the watchdog.
The findings come after education unions criticised Ofsted’s proposed inspection reforms for being “worse” than the system they would replace.
‘I’m terrified’: Disabled benefit claimants on the impact of Labour’s £5 billion cuts to welfare
Tuesday 25 March 2025 23:03
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Athena Stavrou
Millions of disabled benefit claimants have found out how their entitlements will be changing from next year following Labour’s long-anticipated decision to slash £5 billion from the welfare spending bill.
Following the announcement, the two most commonly claimed health-related benefits – the Personal Independence Payment (PIP) and the health element of Universal Credit – are both set to see major changes over the coming years and months.
This has left many of the UK’s health-related benefit claimants concerned for their futures, and unsure if they will be able to afford the essentials.
Welfare recipients tell my colleague Albert Toth what losing their health-related benefits would mean to them:
Global rise in borrowing costs to blame for UK’s higher debt spending – Reeves
Tuesday 25 March 2025 22:22
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Athena Stavrou
Rachel Reeves has sought to blame deteriorating public finances on a global rise in borrowing costs as she prepares to unveil a spring statement widely expected to include spending cuts.
Speaking to broadcasters ahead of her statement on Wednesday, the Chancellor said Britain had not been “immune” from global increases in the cost of government debt.
But she insisted she would meet her “non-negotiable” fiscal rules despite expectations that official forecasts also published on Wednesday would show her “headroom” against those targets had vanished.
She said: “We can see that the world is changing, and part of that change is increases globally in the cost of government borrowing – and Britain has not been immune from those challenges.
“The OBR (Office for Budget Responsibility) will set out their verdicts on growth and on the public finances today, but we will continue to meet the fiscal rules I set out in the budget last year.
“Economic stability is non-negotiable, I will never play fast and loose with the public finances like the previous government did.”
Reeves to announce extra £2.2bn defence spending in spring statement
Tuesday 25 March 2025 22:03
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Athena Stavrou
An extra £2.2 billion will be spent on the UK’s defence over the next year, the Chancellor is to announce at the spring statement.
The extra funding is being put on the table as the Government aims to hike defence spending to 2.5% of the UK’s economic output by 2027.
Ms Reeves will insist this plan, set out by the Prime Minister in February, was the “right decision in a more insecure world”, adding: “But we have to move quickly in a changing world. And that starts with investment.”
The April funding increase will help pay for new technologies, like long range laser and microwave weapons – collectively known as directed energy weapons – which will be fitted to warships.
Homes for military families will, meanwhile, be refurbished, including the 36,000 recently brought back into public ownership from the private rented sector.
Rachel Reeves to announce further welfare cuts - reports
Tuesday 25 March 2025 22:01
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Athena Stavrou
The Chancellor is reportedly set to announce further welfare cuts during her spring statement on Wednesday.
According to The Times, the Office for Budget Responsibility (OBR) rejected the government’s estimate that £5 billion would be saved from planned welfare reforms.
Instead, the watchdog reportedly told ministers it would only save £3.4 billion - leaving Rachel Reeves to fill a £1.6 billion hole in her economic plans.
The Times reported that Ms Reeves will announce around £500 million of further welfare savings on Wednesday.
These are thought to include the freezing of universal credit incapacity benefits for new claimants t be frozen until 2030 rather than increased in line with inflation and a small reduction in the basic rate of universal credit in 2029.
The paper also reported that the rest of the gap will be filled by reducing public spending by £5 billion, with details of the cuts to be announced at the spending review in June.
The Independent has contacted the Treasury for a comment.
Watch: What to expect from Rachel Reeves' spring statement
Tuesday 25 March 2025 21:24
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Athena Stavrou
Reeves to take on unions in showdown over austerity Budget
Tuesday 25 March 2025 21:03
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Athena Stavrou
Rachel Reeves is gearing up for a major fight with trade unions who warn they will not stand by and allow a second age of austerity in the UK.
With serious concerns that the chancellor plans a severe squeeze on departmental budgets to balance the books, union bosses fear a new round of pay freezes and thousands of job losses.
In an ominous warning about a potential wave of strikes if pay demands are not met, one leading trade union leader, Steve Wright of the Fire Brigades Union (FBU), told The Independent: “Workers struggling to afford the basics will not accept falling living standards from Labour.”
Read the full story:
Spring Statement could see 'steepest cuts since 2019'
Tuesday 25 March 2025 21:01
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Athena Stavrou
It has been understood that Ms Reeves will announce major cuts in her Spring Statement, which could amount to billions across several Whitehall departments. There could be as much as 7 per cent taken from the budgets of some departments over the next four years, The Guardian reports.
Alongside the recently announced cuts to welfare spending, these could amount to the “steepest cuts since 2019,” the Institute for Fiscal Studies’ (IFS) associate director, Ben Zaranko, said.
“The government will be hoping that the short-term cash injection provided last year, and efficiency improvements as public services continue to recover from the pandemic, will be enough to deliver service improvements even if money is tight,” he added.
“But we’re in a very different world to 2010 and, even though the pace of cuts would be substantially slower than in the peak austerity years, it would still represent the steepest cuts since 2019.”
Will income taxes be raised in the Spring Statement?
Tuesday 25 March 2025 20:15
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Athena Stavrou
There has been speculation that the chancellor may look to effectively increase taxation through extending the freeze on income tax thresholds beyond the current 2028/29 end point. Since 2021, the personal allowance has been frozen at £12,570, with the basic, higher and additional rate also staying at the same level.
The effect of this is what economists call “fiscal drag,” where more people are pulled into higher tax brackets as their earnings increase, but the thresholds stay the same.
While maintaining this policy would not technically be raising taxes on working people – a central Labour election pledge – it would mean that taxpayers on average will be paying more in income tax than they would have been.
Sadiq Khan ‘concerned’ Islamophobic abuse puts young people off politics
Tuesday 25 March 2025 19:47
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Athena Stavrou
Sir Sadiq Khan is concerned that Islamophobic abuse aimed at him is putting people from ethnic minorities off getting involved in politics, sources close to the Mayor have said.
Analysis from the Greater London Authority (GLA) found Islamophobic abuse targeting Sir Sadiq more than doubled last year, making 2024 the second worst year of his mayoralty for such abuse.
A source close to Sir Sadiq said: “The Mayor is extremely concerned about the impact of hateful and abusive content online. This kind of content can have devastating real-life consequences, and it’s a problem which is getting worse not better.
“The Mayor is concerned that his treatment is discouraging young minority Brits from getting involved in politics or public life, meaning we’re losing a lot of talent.
“It could be having a chilling effect on ethnic minorities putting their head above the parapet.”
Lib Dems urge UK to 'hold firm' on Russian sanctions
Tuesday 25 March 2025 19:22
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Athena Stavrou
The Liberal Democrats have urged the UK to “hold firm” on Russian sanctions despite signs the US could be about to ease restrictions on Moscow.
Lib Dem foreign affairs spokesman Calum Miller said: “Russia has terrorised Ukraine and has been rightly shunned by the UK and our allies.
“There is no basis for removing sanctions while Russia continues to occupy Ukraine and menace other countries. The UK and our constant allies should hold firm.
“Trump has had the wool pulled over his eyes if he thinks this Black Sea deal is a fair swap for lifting Russian sanctions. In Trump’s world, Putin can have his cake and eat it: restored Russian access to world markets while he continues to raze Ukraine.”
Mr Miller added that while the deal was “an important first step” towards peace, Vladimir Putin would “continue his illegal invasion across land and air to force Kyiv’s submission”.
He said: “The UK and our allies must double down on our support for Zelensky, to compel Putin to back down from his goal of turning Ukraine into a vassal state.”
Carla Denyer speaks at a protest against expected UK government cuts in tomorrow's spring statement
Tuesday 25 March 2025 18:57
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Athena Stavrou
What will be in the Spring Statement?
Tuesday 25 March 2025 18:22
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Athena Stavrou
The Treasury has not shared details of what will be in the Spring Statement, but economists have begun making predictions of what is most likely.
It has been understood that Ms Reeves will announce major cuts on 26 March, which could amount to billions across several Whitehall departments. There could be as much as 7 per cent taken from the budgets of some departments over the next four years, The Guardian reports.
There has also been speculation that the chancellor may look to effectively increase taxation through extending the freeze on income tax thresholds beyond the current 2028/29 end point. Since 2021, the personal allowance has been frozen at £12,570, with the basic, higher and additional rate also staying at the same level.
The effect of this is what economists call “fiscal drag,” where more people are pulled into higher tax brackets as their earnings increase, but the thresholds stay the same.
The chancellor may also take the Spring Statement as an opportunity to clarify how international aid spending will be reallocated to defence, following Labour’s decision to boost defence spending to 2.5 per cent by 2027.
What time is the Spring statement?
Tuesday 25 March 2025 17:56
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Athena Stavrou
Rachel Reeves will deliver the Spring Statement on Wednesday 26 March at around 12.30pm.
Before the statement, the Office for Budget Responsibility (OBR) will publish its forecast on the UK economy.
The OBR’s forecast on 26 March will also provide estimates on the cost of living for households, and how well it thinks the government will maintain its self-imposed fiscal rules.
The chancellor will then present the main findings to parliament, delivering her plans for the economy alongside this. The opposition will be given the first response, which will likely come from Conservative leader Kemi Badenoch or shadow chancellor Mel Stride.
Benefits reform and jobs cuts: The political headaches for Labour in Reeves’ spring statement
Tuesday 25 March 2025 17:48
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Athena Stavrou
Rachel Reeves is set to unveil billions of pounds worth of cuts in her spring statement, in what could be one of the most pivotal moments in her career.
The chancellor had hoped her speech might be simply a straightforward update on the state of the country’s finances.
But faltering economic growth and higher than expected borrowing figures, combined with her pledge not to raise taxes after her multi-billion pound raid in last year’s Budget, have raised the stakes.
Here, we take a look at what she is expected to announce – and the political fault lines it could trigger:
Greens urge government to ‘rebalance the economy’ ahead of Spring Statement
Tuesday 25 March 2025 17:12
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Archie Mitchell
The Green Party has photo-bombed the Treasury ahead of the chancellor’s spring statement, with its MPs dragging a set of scales in front of the building to show the economy is “unbalanced”.
Co-leaders Adrian Ramsay and Carla Denyer led the stunt, demonstrating that benefit cuts could be outweighed by a wealth tax, joined by MPs Sian Berry and Ellie Chowns.
Ahead of the spring statement, Mr Ramsay said: “It’s not fair that this government is unwilling to introduce a modest tax on the extremely wealthy while removing vital support from a million disabled people.
“Fifteen years of austerity have driven our economy to the edge—forcing ordinary people to bear the burden while multi-millionaires, billionaires, and big corporations amass extreme wealth. Meanwhile our economy is not prepared to protect us from the climate crisis.
“Labour’s plans will only deepen this inequality and push our economy further off-kilter. From removing the winter fuel payment from millions of pensioners to plans for more public service cuts, this government’s priorities are completely skewed.
“Instead of doubling down on the Conservative failed austerity experiment and pushing more people into hardship, it’s time to rebalance our economy for good.”
Trump’s top team slammed for ‘unbelievably stupid’ security breach after Signal group chat leak
Tuesday 25 March 2025 16:43
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Athena Stavrou
Donald Trump’s top team have been dubbed “unbelievably stupid” by Gordon Brown’s former national security adviser after a journalist was mistakenly added to a group chat outlining plans to strike the Houthis in Yemen.
Lord West of Spithead, a retired admiral of the Royal Navy, told The Independent the incident was “absolutely extraordinary”, while former defence secretary Sir Malcolm Rifkind described the incident as an “appalling breach of security”.
Read the full report:
Unclear if UK will ease sanctions on Russia if US does
Tuesday 25 March 2025 16:26
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Athena Stavrou
Downing Street was unclear whether the UK will follow the US, which has suggested it could ease sanctions on Russia, but said the Government is “hopeful of the progress” in peace talks.
Asked if the UK could follow the American lead in the latest announcement of the peace talks and ease sanctions on Moscow, a No 10 spokesman said: “The first thing to say is obviously this has just come through in the last half-an-hour or so. Our position at the moment is that we are obviously hopeful of the progress. We are following developments closely.”
There has been no contact with the Ukrainians since the announcement, No 10 said.
Spring Budget: What is the Office for Budget Responsibility and why is it so powerful?
Tuesday 25 March 2025 16:16
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Athena Stavrou
Rachel Reeves, the chancellor, will on Wednesday have to respond to the Office for Budget Responsibility’s forecast for taxes, spending and borrowing.
But what is the OBR and why is it so powerful?
The Independent’s chief political commentator John Rentoul answers:
MPs reject amendment to exclude hospices and care homes from tax rises
Tuesday 25 March 2025 16:05
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Athena Stavrou
MPs have voted against a Lords amendment which sought to protect the health and social care from tax rises.
The House of Lords tabled an amendment to the chancellor’s national insurance hike for employers, which was announced in October.
But on Tuesday, MPs voted 312 to 190, majority 122, to reject the amendment designed to introduce exemptions for the health and social care sector from the employers’ national insurance increase, including hospices, care homes, dentists and pharmacies.
February inflation set to ease in ‘calm before storm’ of April bill hikes
Tuesday 25 March 2025 15:50
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Athena Stavrou
UK inflation is expected to have eased back in February in the “calm before the storm” of bill hikes setting in next month.
The Office for National Statistics will publish the latest inflation data on Wednesday, the same day the Chancellor will deliver her spring statement to Parliament.
Most analysts think Consumer Prices Index (CPI) inflation will come in at 2.9% for February, down from the 3% recorded for January - above the Bank of England’s 2% target.
However, experts have cautioned that the tide is set to turn next month when prices for the new tax year come into effect, on bills such as energy, water and council tax.
Greens protest cuts at HM Treasury
Tuesday 25 March 2025 15:31
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Athena Stavrou
Green Party MPs arrived at HM Treasury to protest government cuts on Tuesday.
Sian Berry, Adrian Ramsay, Ellie Chowns and Carla Denyer brought scales to show the unfairness of targeting disabled people for government cuts when a tax on assets over £10 million could raise nearly five times as much.
Key numbers around housing asylum seekers in UK hotels
Tuesday 25 March 2025 15:22
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Athena Stavrou
A Home Office minister said it is “pointless” to give a timeframe on when asylum hotels will close, amid warnings the cost risks becoming a “mark of shame” if unresolved.
But how many asylum seekers are in UK hotels?
Some 38,079 asylum seekers were being housed temporarily in UK hotels at the end of December 2024, according to the latest data from the Home Office.
This is up 2,428 from 35,651 at the end of September.
It is the second quarterly rise in a row, although the total is still some way below the recent peak of 56,042 at the end of September 2023.
The Government earlier this month said 216 hotels were in use and seven are due to close by the end of April 2025.
More than 400 hotels were in use at one stage under the previous government, which was said to cost almost £9 million per day.
‘Pointless’ to give dates for asylum hotel closures, says Home Office minister
Tuesday 25 March 2025 15:07
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Athena Stavrou
A Home Office minister said it is “pointless” to give a timeframe on when asylum hotels will close, amid warnings the cost risks becoming a “mark of shame” if unresolved.
Dame Angela Eagle said the Government wants to “get out of hotels as quickly as is feasible” but declined to offer specific details when asked in the House of Commons.
Dame Angela told the Commons: “I want to get out of hotels as quickly as is feasible.
“I’m not going to name particular dates, because that is a pointless thing to do. The thing is that we’ve got to get through the appeals system, and the first asylum processing system so that we can move people through the system much more quickly.
“We also need to continue our work on returns. We’ve ramped those up so that there’s been a huge increase in people returned. The highest figures for the last five years, and we intend to continue with that process.”
Yougov poll reveals collapse in confidence in Labour’s handing of the economy
Tuesday 25 March 2025 14:43
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David Maddox
Rachel Reeves will stand up to deliver her sporting statement tomorrow with public confidence in her handling of the economy at a low after a failure to spark the growth she promised during the election.
According to the findings 73 per cent of those surveyed by Yougov think Labour is doing a bad job with the economy.
A mere 16 per cent think it is doing a good job.Half (53 per cent) say Rachel Reeves has done a bad job as chancellor - only 11 per cent view her performance positively.
Four in ten (41 per cent believe the government taxes and spends too much, 23 per cent say it taxes and spends too little and 12% think they get the balance about right.
Meanwhile, 56 per cent say the rich are not paying enough tax, suggesting wide support for a so-called wealth tax while 69 per cent say they would like the government to spend more on the NHS.
Pictures: Protesters interrupt Nigel Farage's speech in Doncaster
Tuesday 25 March 2025 14:19
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Athena Stavrou
Ex-Reform MP Rupert Lowe ‘unlawfully harassed’ two women and failed to tackle ‘toxic’ office culture, inquiry finds
Tuesday 25 March 2025 14:16
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Athena Stavrou
An independent investigation has found “credible evidence of unlawful harassment of two women” by MP Rupert Lowe and his team, Reform UK has said.
The probe by Jacqueline Perry KC was launched by the party after they received complaints from two women working in Mr Lowe's offices, who complained of bullying from the MP himself and male members of staff.
The MP, who has been suspended from the Reform Party, has repeatedly denied the allegations and has claimed it is part of an attempt to smear his reputation.
The Independent’s Political Correspondent Millie Cooke has the full story:
Rupert Lowe denies bullying allegations
Tuesday 25 March 2025 14:14
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Athena Stavrou
Suspended Reform UK MP Rupert Lowe has denied allegations of bullying in his officer.
The politician took to social media to publish a statement from his “entire current team” on X.
“These two women have vexatiously complained in an attempt to smear Rupert, and the entire team. And we are a team. We work together well,” the statement reads.
“The only issues raised within the office have been from these two individuals, who only did so after they committed serious offences. This whole ordeal has been difficult on all of us.
“We don’t want any of this – we just want to get on with our jobs, and support Rupert who has been a fantastic boss.
“There has never been any bullying – we will all go on the record to say so, and have done so already.”
Public want Reeves to tax super wealthy over cut spending in spring statement, poll says
Tuesday 25 March 2025 14:01
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Athena Stavrou
Over three quarters of the British public would prefer to see the Chancellor implement higher taxes on the rich than cut public spending, a poll has found.
A YouGov poll conducted on behalf of Oxfam has found that 78 per cent of people would back a 2 per cent wealth tax on people with assets worth more than £10 million.
The survey of 2,257 people also found that 77 per cent would rather see higher taxes on the rich than cuts in public spending.
Anna Marriott, Oxfam senior policy adviser, said: "This is not about scarcity, it's about political choices.
"The government claims there's no alternative but to take money from the people struggling the most, both here and around the world; yet there is a huge amount of potential revenue that they refuse to consider.
"This money could be used to reduce poverty, inequalities and also strengthen public services instead of piling up in the pockets of the super-rich."
Boost economy with EU trade deal, not benefit cuts, public say
Tuesday 25 March 2025 13:35
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Archie Mitchell
The British public overwhelmingly back a trade deal with the EU over public spending cuts to shore up the country’s finances, polling shows.
Almost half of those polled by YouGov for Best for Britain said they thin
