On the 26th of March 2025, Rachel Reeves presented her Spring Statement to parliament. Despite a backdrop of low economic growth and increasing government borrowing costs, the Chancellor remains committed to her ‘non-negotiable’ fiscal rules that aim to bring stability to the economy and security for working people. With further borrowing ruled out, and a determination not to announce further tax changes, her focus has been on government spending. Key changes include:
- An ongoing commitment to generate economic growth, despite short-term forecast growth levels being revised downwards from 2% to 1%.
- Increasing defence spending so we can be more prepared in a rapidly changing world.
- Changing the welfare system, including stricter tests for personal independence payments.
- Streamlining the civil service, with an accelerated new Transformation Fund.
- Increasing investment in social and affordable housing.
- Tackling skill shortages, including in the construction sector.
- Cracking down on tax evasion.
For a more detailed explanation of the announcements, please click on the button below.
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