Rachel Reeves is set to deliver her spring statement on the state of the UK economy on Wednesday.
The Chancellor is expected to announce cuts to the welfare benefits and other Government departments as she seeks to balance the books after the budget watchdog said the Government’s plans will not save as much as ministers hoped.
The assessment from the Office for Budget Responsibility (OBR) is that changes to disability and incapacity benefits will save £3.4 billion in 2029/30 rather than the more than £5 billion claimed by ministers.
- The rate of inflation fell to 2.8% in February, according to the Office for National Statistics
- Rachel Reeves is expected to announce cuts to welfare benefits
- The Chancellor has promised a £2.2 billion boost to defence spending
10.50am
Defence Secretary John Healey said Chancellor Rachel Reeves would deliver a “tough” statement “in tough times”.
The Chancellor is expected to announce further welfare cuts at a time when she has promised a £2.2 billion boost to defence spending.
Asked how Labour supporters would view that, Mr Healey told BBC Radio 4’s Today programme: “It will be a tough, strong statement in tough times.
“The Chancellor will set out this afternoon that the world is changing, our task is to secure Britain’s future and that’s why she is making an extra £2.2 billion available for defence.”
10.30am
9am
10.15am
Ahead of the spring statement, Prime Minister Sir Keir Starmer said: “In an era of global change, we will deliver security for working people and renewal for Britain.”
10am
Security for working people and renewal for our country.
— Rachel Reeves (@RachelReevesMP) March 26, 2025
That is our mission.
And in a changing world we will deliver.
Rachel Reeves shared a post on X as she started her day ahead of the spring statement. The Chancellor said: “Security for working people and renewal for our country. That is our mission. And in a changing world we will deliver.”
9.45am
The rate of Consumer Prices Index inflation fell to 2.8% in February from 3% in January, the Office for National Statistics said.
9.30am
Welcome to PA’s live coverage of the Chancellor’s spring statement.
Read More
