Fiscal watchdog the OBR is reported to have warned that welfare cuts will not save ministers the £5 billion they had expected.
Chancellor Rachel Reeves will deliver her spring statement, acknowledging the need for faster economic growth amid grim forecasts and pressure to balance the budget without raising taxes. The Office for Budget Responsibility (OBR) is expected to cut its growth forecast, impacting tax receipts. Reeves remains committed to economic stability and plans to cut Whitehall administrative budgets, but faces a potential shortfall due to lower-than-expected savings from benefits reforms.
