Chancellor faces speculation she will be forced to find more money to balance the books
In her Spring Statement 2025, Chancellor Rachel Reeves unveiled a £14bn plan to repair the UK economy, including £5 billion in welfare cuts. Reeves refused to rule out future cuts or tax hikes, facing backlash from Labour MPs who warned the welfare cuts would increase poverty. Government analysis suggests the cuts will push 250,000 people into poverty, including 50,000 children. The budget watchdog also suggested Labour's worker rights plans could negatively impact employment. Reeves disputes the government's poverty impact assessment.
