Rachel Reeves has received a knock ahead of the spring statement on Wednesday as Brits are increasingly pessimistic about the state of the economy.
Some 58 per cent of people said they believe the economy is worsening, with just one in 10 believing growth was getting better, according to a survey by KPMG.
The survey’s bleak results comes as the Chancellor of the Exchequer is set to give an update on the economy and any progress she has made since her statement in October.
While Ms Reeves has ruled out any ‘tax and spend’ policies, she has spoken about cutting the civil service workforce by 15 per cent. She also vowed a £2 billion grant to deliver up to 18,000 new homes in England
Sir Keir Starmer has spoken to the US president about an economic prosperity deal after Donald Trump imposed tariffs on UK and EU steel and aluminium imports, as well as on Canada, China and Mexico in recent weeks, leading to a wave of retaliatory tariffs around the world.
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Key Points
- Bank of England governor calls for co-operation amid tariff war
- Tories warn Spring Budget will usher in new era of austerity
- Government does not want to get into a 'world of tariffs', says minister
- Reeves offers £2bn affordable housing boost ahead of sweeping cuts to public services
Minister 'confident' Labour can build 1.5 million homes by end of parliament
09:14
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Bryony Gooch
Housing minister Matthew Pennycook has said he is “still confident, still committed” that Labour can build 1.5 million homes by the end of parliament as the government announces a new £2 billion housebuilding plan.
“It's an incredibly stretching target. We could have picked a far less stretching target. Would have been far easier to meet.
“But it wouldn't have been commensurate with the scale of the housing crisis that we face in this country.”
He pointed out that 160,000 children remain “homeless in temporary accommodation as we sit here”, adding: “We’ve got to take radical action to turn that around.”
He called the £2 billion an “immediate injection” that is “part of our commitment to deliver the biggest boost in social and affordable house building in a generation”.
“This is not the sum total of what we'll invest in social and affordable housing for 2026-27; It's a down payment on future long term funding, it's a bridge to get us to a successor programme, but pulling that funding forward will give certainty to the sector.”
What would you like to see from Rachel Reeves’ spring statement?
09:03
,
Bryony Gooch
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.
Shocking figures reveal UK spends double the defence budget on working age benefits
08:56
,
Bryony Gooch
The UK spends more than twice as much on benefits for working-age people as it does on defence each year, a new analysis by The Independent can reveal, laying bare the shocking scale of Britain’s welfare bill.
As Sir Keir Starmer faces a potential backlash over plans to end disability payments for around 1 million people, figures from the Department for Work and Pensions show the government spend on all working-age benefits is £117.6bn – representing 4.5 per cent of GDP and is 9.2 per cent of the government’s overall budget.
That is more than double the amount spent on defence (£56.4bn) and more than the entire education budget (£116bn).
David Maddox reports:
Starmer: We cannot ‘shrug our shoulders’ at problem with boys and young men
08:44
,
Bryony Gooch
Sir Keir Starmer said problems with the attitudes of some boys and young men cannot be ignored.
The Prime Minister said the Government should not “shrug our shoulders” about the challenges, although he rejected the suggestion a “minister for men” was needed.
His comments came after former England football manager Sir Gareth Southgate said many young men were turning to “manipulative and toxic influencers” because of a lack of male role models.
Minister says it's not 'appropriate' to accept free tickets
08:32
,
Bryony Gooch
Housing minister Matthew Pennycook has said he does not “personally think it’s appropriate” to accept free tickets to the O2 and that if he wanted to see a show he would pay for it.
The minister told LBC, as chancellor Rachel Reeves faces criticism for accepting free tickets to see Sabrina Carpenter: “I don’t personally think it’s appropriate. If I want to go to a concert at the O2 I’ll pay for it.
“But individual MPs, individual ministers make their own decisions. I think that the important thing is that everything is declared and above board, so individual people can make their choices as to whether they think it’s appropriate to take tickets on occasions.
“I personally haven’t done, as I said, at the O2, and wouldn’t do.”
Reeves offers £2bn affordable housing boost ahead of sweeping cuts to public services
08:27
,
Bryony Gooch
Thousands of new homes in England will be built as part of the biggest boost in social and affordable housebuilding in a generation, the government has said.
Chancellor Rachel Reeves vowed the £2 billion in grant funding to deliver up to 18,000 new homes in England will go some way to “fixing the housing crisis”.
Millie Cooke reports:
Jeremy Hunt warns accountants could be replaced by AI as he admits to using ChatGPT to help write book
08:22
,
Bryony Gooch
Former chancellor of the exchequer Jeremy Hunt has warned graduates not to go into accountancy because the profession is being replaced by artificial intelligence.
The former chancellor said: “computers are going to be able to do a huge amount of the work that’s currently done by accountants”.
He instead suggested careers in medicine or IT would be safer, as he spoke on Jimmy’s Jobs of the Future, a podcast with Jimmy McLoughlin.
He also admitted to using ChatGPT to help him write: “I use it because now I’m not in the government, as well as representing my constituency, I’m writing and about to publish a book on Britain’s role in the world,” he said.
“And when you’re doing research, ChatGPT is just so fantastic at telling you things instantly.”
In pictures: Angela Rayner and Rachel Reeves visit Bournes Bank housing development site
08:07
,
Bryony Gooch
Government does not want to get into a 'world of tariffs', says minister
07:59
,
Bryony Gooch
Housing minister Matthew Pennycook has said the Government does not “want to get into a world of tariffs” when asked if the digital services tax would be worth scrapping in order to secure a trade deal with the US.
Housing minister Matthew Pennycook told Sky News: “We are focused on trying to agree an economic prosperity deal with the United States. We’re hugely invested in each other’s economies.
“There’s great strengths that our countries share in terms of that trading relationship, and it’s fair and balanced at present.
“So we don’t want to obviously get into a world of tariffs. I’m not going to comment on trade negotiations that are ongoing but I think you’re viewers can be assured we’re going to negotiate in the national interest, we’ll ensure that we get a good deal, but we are focused on that deal and the Prime Minister spoke very recently to President Trump about the progress that is taking place on those negotiations.”
Minister guarantees Government solar panels will not be 'provided by slaves in China'
07:52
,
Bryony Gooch
Housing minister Matthew Pennycook said he could ‘absolutely’ guarantee that materials made to make solar panels used by the Government will not have been made by Uyghur people in China following concerns about slavery.
He was later asked again by Times Radio, to which he replied: “I understand the concern that people have out there about the use of particularly Uighur region… What I’m saying I suppose is we need to see action across the whole of the energy industry and that’s why we’re working across Government to tackle the issue of forced labour in supply chains.”
Pressed again to give a yes or no answer, he said: “I think I’ve answered very clearly, we’re taking action across the whole of government to tackle the issue of forced labour in supply chains.”
Housing minister refuses to say when use of hotels for asylum seekers will end
07:49
,
Bryony Gooch
Housing minister Matthew Pennycook said: “The Tories gave up on processing asylum claims, decision-making in the asylum processing system collapsed by 70%, so we have a huge backlog and if we are going to work through that backlog… then we have got to deal with that problem in the short term.”
“I’m not going to give you a timeline today on when the use of hotels will end.”
Government ends contract with chain hotel to provide asylum seekers housing
07:42
,
Bryony Gooch
The government are severing ties with Stay Belvedere Hotels, who they have worked with to provide accommodation to people waiting for asylum decisions.
Stay Belvedere Hotels has provided shelter across 51 hotels in England and Wales after it was awarded a contract in 2019. The Home Office said it would end in September 2026.
Angela Eagle, the asylum minister, said: "Since July, we have improved contract management and added more oversight of our suppliers of asylum accommodation.
"We have made the decision to remove Stay Belvedere Hotels from the Home Office supply chain and will not hesitate to take further action to ensure Home Office contracts deliver for the UK."
Wealth tax almost impossible to implement, leading economist warns
07:33
,
Bryony Gooch
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.
Millie Cooke reports:
Jess Phillips: MPs need to take 'very seriously' growing number of sexual violence cases among teens
07:24
,
Bryony Gooch
Safeguarding minister Jess Phillips has said MPs need to take “very seriously” the rising number of sexual violence cases among 14 and 15-year-olds.
She told Sophy Ridge on Sky that the data showed a rise in both victims and perpetrators of assault in this age group.
As a mother of teenage sons, she also had to be “very alive to not wanting to just make all boys feel like they are the problem".
She said it was the government’s responsibility to look into whether this requires a Violence Against Women and Girls strategy or “other things around prevent and other forms of radicalisation to look at what is happening with our teenagers”.
Rachel Reeves ‘doesn’t recognise’ reported cuts to universal free school meals for young children
07:00
,
Holly Bancroft
Rachel Reeves has said she “doesn’t recognise” reports suggesting ministers are looking at cutting universal free school meals for the youngest children.
The chancellor is expected to announce spending cuts for some government departments in her spring statement to the Commons on Wednesday.
Education secretary Bridget Phillipson is reportedly looking to make £500 million in cuts to the schools budget, and has apparently floated cutting universal free school meals as a way to reduce costs.
Read the full report:
Housing target can only be achieved by 'rushing construction of low quality homes', Tory MP says
06:01
,
Athena Stavrou
A Government target of 1.5 million new homes by the end of this Parliament can only be achieved by “rushing the construction of low-quality homes”, a Conservative MP has claimed.
Lewis Cocking, the MP for Broxbourne in Hertfordshire, told the Commons that “if you don’t plan a development correctly, i.e. with the right number of car spaces, then there are issues where people try and park their car”, and the result of poor planning is “anti-social behaviour etcetera etcetera”.
He added: “I’ve sat on the planning committee and I’ve seen developments come forward that are utter rubbish and we need to change the mindset of developers and we must ensure that we have good design.
“But the Government aren’t seeking to change that. They’re embracing it by committing to a target that can only be achieved by rushing the construction of low-quality homes with no plans for those who will live there.”
King meets with UK and French military top brass at Windsor
05:01
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Athena Stavrou
The King has met with the UK and France’s top military leaders at Windsor Castle.
Charles, who is head of the British armed forces, held an audience with the joint chiefs of staff from both countries on Monday afternoon.
The meeting came as Western military planning to enforce a potential ceasefire in Ukraine intensified in London, with discussions between the British and French military chiefs.
Tories not to oppose government's planning bill
04:00
,
Athena Stavrou
Conservative MPs will not oppose the Planning and Infrastructure Bill at its second reading on Monday, the party’s shadow housing secretary has said.
At the despatch box, Kevin Hollinrake told MPs: “We will not oppose the passage of this Bill this evening, but will seek to amend it in ways that do not undermine the ambition to accelerate the delivery of new homes.
“But do make sure there are checks and balances that protect communities, rural areas, farmers, the environment and deliver well-designed affordable homes for everyone, not least those on lower incomes and first-time buyers.”
Bid to reverse postponement of local elections defeated in the Lords
03:00
,
Athena Stavrou
Efforts to reverse the suspension of local elections in England have been defeated in the House of Lords.
Nine councils have had their elections delayed by one year while the Government reorganises local government.
In a rare move, two so-called fatal motions were proposed by the Liberal Democrats and the Green Party in the upper chamber, in a bid to keep local elections scheduled for this May.
The postponement of elections was described as “anti-democratic” by the Liberal Democrats, before peers voted 63 to 163, majority 100, to defeat the party’s fatal motion.
British and French military chiefs meet ahead of Ukraine peacekeeping talks
01:59
,
Athena Stavrou
British and French military chiefs have met in London at the start of a week that will see further talks on plans for a peacekeeping force in Ukraine.
Admiral Sir Tony Radakin, the head of the UK’s armed forces, said Europe’s two nuclear powers were “stepping up to forge a stronger and deeper partnership” after meeting his French counterpart General Thierry Burkhard on Monday.
Alongside the heads of each nation’s army, navy and air force, the two men discussed efforts to “galvanise” the European response to the situation in Ukraine – while Ukrainian, Russian and American officials attended talks in Saudi Arabia aimed at achieving a ceasefire.
Starmer promises to clamp down on local authorities in war on potholes
01:03
,
Athena Stavrou
Sir Keir Starmer has promised to clamp down on local authorities and force them to prove they are tackling potholes or lose the cash to fix them.
Ministers “want to get our sleeves rolled up” and fix potholes for good, the prime minister said on Monday, as he announced an additional £4.8bn of funding to carry out work on motorways and major A-roads.
Local authorities will start to get their share of £1.6bn in highway maintenance funding confirmed last year, up £500 million from the previous year, in mid-April.
Millie Cooke reports:
How many people work in the civil service?
00:38
,
Athena Stavrou
The UK Civil Service workforce is the largest it has been in nearly two decades, as Rachel Reeves suggests axing the workforce by 10,000 and The Times suggest it could be cut by 50,000.
As of December 2024, there were a total 548,000 employed in the Civil Service according to the Office for National Statistics.
Of the 548,000, nearly 441,400 are full-time roles and the remainder are part-time positions.
The last time the quarterly headcount was this high was September 2006, when it stood at 549,000.
Pensions, ISAs and stamp duty: The tough choices experts expect Rachel Reeves to make in the Spring Statement
Monday 24 March 2025 23:25
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Athena Stavrou
Chancellor Rachel Reeves will speak on Wednesday to give the Spring Statement - with a mix of problematic themes and possibilities to cover as the UK attempts to promote economic growth but also battles with soaring borrowing.
Pledging no more tax raises only leaves a few options for Ms Reeves. Those are primarily around reallocating funds or cutting even more spending - and it’s the latter which appears to be most likely to happen following big tax hikes as recently as October.
So what are the big decisions facing Ms Reeves, and which direction will she and the government take with them? The Independent spoke to experts to see not just what might emerge from the Spring statement, but how it might affect you.
Karl Matchett reports:
Welfare in numbers: The facts behind Britain’s soaring benefits bill
Monday 24 March 2025 21:58
,
Athena Stavrou
As Labour attempts to tighten Britain’s burgeoning welfare belt, Alicja Hagopian and David Maddox investigate the true cost of the welfare state:
Farage and Reform UK fail to attend anti-Brexit debate
Monday 24 March 2025 21:18
,
Athena Stavrou
Nigel Farage and Reform UK have come under fire for failing to attend a debate in parliament calling for Britain to rejoin the EU.
The Reform UK leader and the party’s MPs were not present to defend Britain’s withdrawal from the EU, while critics attended en masse to call for closer ties with Europe.
And one MP, Liberal Democrat Europe spokesman James MacCleary, said “where is the honourable member for Clacton [Mr Farage]?”.
“According to Hansard, since his election in July, he has mentioned Brexit just twice,” Mr MacCleary pointed out.
“Surely if this Brexit deal was the monumental success he and others had promised, he’d be reminding us to no end?”
Pictured: Farage and new Reform candidate in Frodsham
Monday 24 March 2025 20:34
,
Athena Stavrou
Bank of England governor calls for co-operation amid tariff war
Monday 24 March 2025 20:06
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Athena Stavrou
Bank of England Governor Andrew Bailey has called for global economies to “come together” to help ease trade tensions, amid a mounting tariff war brought about by US President’s Donald Trump’s policies.
Speaking at Leicester University on Monday, Andrew Bailey said: “These two points: domestic macroeconomic forces and trade policy, are not incompatible.
“They sit together. My final point here is that to solve these issues we need authorities to come together and strengthen the rules of engagement in a multilateral setting,” he said.
Tories to increase pressure on grooming gang inquiry
Monday 24 March 2025 19:58
,
David Maddox
Tory leader Kemi Badenoch has announced that the Tories will lay an amendment to the crime bill for a national inquiry into grooming gangs.
The amendment will fail but could prompt a number of Labour MPs to rebel after they backed the call for an inquiry.Rochdale MP Paul Waugh and Rotherham MP Sarah Champion were among four Labour MPs to back the calls previously.
Ms Badenoch tweeted: “It has now been over two months since Labour announced just five local rape gang inquiries. Yet victims have still heard nothing.
“We need a full national inquiry to reveal the true extent of the systemic abuse and cover ups. We will not standby and allow this horrifying scandal to be swept aside.”
Watch: Reeves defends accepting Sabrina Carpenter tickets
Monday 24 March 2025 19:36
,
Athena Stavrou
Minister defends pay package of up to £640,000 for public sector post
Monday 24 March 2025 19:13
,
Athena Stavrou
A pay package worth up to £640,000 for a civil servant has been billed as the “right salary to attract the right person” by the Government.
The Ministry of Defence is hiring a national armaments director (NAD) to ensure the armed forces are properly equipped to defend Britain and to build up the country’s defence industry.
The salary is advertised as between £290,000 to £400,000, plus a bonus of up to 60% of salary per annum. The package also includes a civil service pension with an employer contribution of 28.97%.
Defence minister Maria Eagle defended the proposed package as she told the Commons: “It’s one of the biggest jobs in government and a job that needs the right salary to attract the right person.
“I’m absolutely clear that we will be doing things differently and the national armaments director will be held accountable for making sure that we do.”
Minister ‘too busy’ for concerts amid Reeves row over Sabrina Carpenter tickets
Monday 24 March 2025 18:31
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Athena Stavrou
A Starmer government minister says she has been too busy since the general election to accept concert tickets amid an ongoing row over Rachel Reeves going to a Sabrina Carpenter show for free.
Transport secretary Heidi Alexander’s comments add to pressure piling on the chancellor, who has faced days of criticism for accepting the freebie gig tickets, saying that she a “very busy diary”.
“I haven't taken any tickets to be honest since I was elected back in June as a new member of parliament and going straight into the Ministry of Justice and then coming straight into the Department for Transport, Ms Alexander told Times Radio. “I actually sadly haven't been to see any concerts at all over the last nine months, partly because I've been very very busy.
Labour anti-Brexit MP warns against ‘false hope’ of rejoining EU
Monday 24 March 2025 18:18
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Athena Stavrou
The head of Labour’s pro-EU caucus of MPs has warned against the “false hope” of Britain rejoining the EU, prioritising “real change and real solutions” instead.
Stella Creasey, the head of the Labour Movement for Europe, was responding in parliament to a petition calling for Britain to return to the bloc.
She highlighted her demands for the UK to agree a youth mobility scheme for those wishing to live and work across Europe, among other tweaks to the country’s current deal with Brussels.
Ms Creasey added: “I stand here ruthlessly prioritising the British interest, which was always being stronger and taller on the world stage and confident that we could work with other countries.
“Never more have we needed that spirit, but never more have we needed to be clear about what needs to be done.
“So I recognise the passion behind this petition. I simply say to those who are petitioning this way, let us not fall into the trap that the Brexiteers have done of offering false hope when the people in this country need real change and real relationships and real solutions.”
Scotland avoided PPE ‘VIP lane’ due to devolution, UK Covid-19 Inquiry told
Monday 24 March 2025 17:59
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Athena Stavrou
Former Scottish health secretary Jeane Freeman has told the UK Covid-19 Inquiry she believed Scotland avoided a “VIP lane” for procuring personal protective equipment (PPE) due to devolution.
Counsel for the inquiry Tom Stoate asked her: “The inquiry has heard about the evidence of a high priority or VIP lane for procurement of PPE. You’ve talked about how NSS worked. Did that mean Scotland needed a fast-track system?”
Ms Freeman said: “Absolutely not. We had offers of help, all of which were passed to NSS. A proper triage process would apply.”
She said that “due diligence” would be applied “to help decide whether new offers were appropriate to award new contracts”.
Swinney attacks ‘utterly irresponsible’ and ‘ludicrous’ Tory net zero U-turn
Monday 24 March 2025 17:42
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Athena Stavrou
John Swinney has attacked the Tories’ “utterly irresponsible” and “ludicrous” U-turn on net zero as he stressed the need for consensus on climate action.
The First Minister said he “read in horror” that Scottish Tory leader Russell Findlay had backed Kemi Badenoch, leader of the UK party, as she ditched her support for net zero emissions by 2050.
Speaking to reporters in Kirkintilloch, East Dunbartonshire, on Monday, the First Minister was asked if he was concerned the debate in Holyrood could change from how the country should reach net zero to whether it should at all.
Mr Swinney said: “I am and I read these comments with horror because I had a Conservative member last week questioning me about wildfires in Scotland in March.
“Let’s just think about that – wildfires in Scotland in March.
“We’ve got to take responsible action. What Kemi Badenoch has said it’s just ludicrous.
“The Conservatives have supported all of the stretching targets on climate action in Scotland, and for them now to say they don’t is just utterly irresponsible.”
Ministers ‘monitoring’ how passengers looked after following Heathrow shutdown
Monday 24 March 2025 17:24
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Athena Stavrou
Ministers are “closely monitoring” how airlines look after their passengers following the “unprecedented” Heathrow shutdown, the Transport Secretary has said.
Heidi Alexander said in the Commons that the Government “is acutely aware of the need to ensure that passengers are well looked after”, after around 200,000 passengers were disrupted by the closure.
A fire at the North Hyde electricity substation last week disrupted power supplies at the West London hub.
Ms Alexander said “back-up systems ensured safety and security systems and protocols were maintained at all times”, but these systems – including diesel generators – were not designed to support the airport’s full operations.
MPs’ pay to rise by 2.8% to £93,904 in April
Monday 24 March 2025 17:12
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Athena Stavrou
MPs’ salaries will rise by 2.8% to £93,904 in the next financial year, Parliament’s expenses watchdog has confirmed.
The Independent Parliamentary Standards Authority (IPSA) said the decision was in line with wider Government pay recommendations for public sector workers.
The increase takes an MP’s salary to £93,904, up from £91,346, and is slightly below the current inflation rate of 3%.
At the start of the last Parliament, in 2019, annual pay stood at £79,468.
No10 updating White House on Ukraine peacekeeping plans
Monday 24 March 2025 16:56
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Athena Stavrou
Downing Street said it is continuing to keep the US updated on military planning meetings.
Asked if there is a specific moment when the coalition of the willing’s plans will be presented to Donald Trump, the Prime Minister’s official spokesman said: “These conversations are happening the whole time between the US, UK and other allies.
“Ahead of, following these military planning meetings, political leaders meetings, we’re continuing to update US and debrief them on these discussions.
“It’s happening at the same time as the US-led talks in Riyadh as well.
“I wouldn’t think of these things necessarily in a kind of linear sequence…I think there’s lots of conversations happening.
“And clearly we’ll be keeping the US closely updated on the development in relation to the coalition of the willing, much like they’re obviously keeping us closely updated on the status of the talks out in Riyadh.”
Starmer 'not worried' by White House remarks on peacekeeping plans
Monday 24 March 2025 16:38
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Athena Stavrou
Downing Street has said that Sir Keir Starmer is not worried about remarks made by the White House special envoy about the coalition of the willing.
The Prime Minister’s official spokesman was asked if there were worries after Steve Witkoff’s remark that Sir Keir’s plans were a “combination of a posture and a pose” in an interview with US journalist Tucker Carlson.
The Prime Minister’s official spokesman said: “No, The PM has repeatedly said that a lasting peace in Ukraine can only be achieved if we provide real and credible security assurances to deter Putin.“
And the coalition of the willing is a group of nations politically aligned to the defence, security and sovereignty of Ukraine… if there is a deal, it’s a deal that has to be defended.”
Heathrow fire 'not believed to be suspicious'
Monday 24 March 2025 16:18
