Chancellor Rachel Reeves will present her first highly anticipated Spring Budget to parliament on Wednesday.
In her first Spring Statement, Chancellor Rachel Reeves announced a reduced 2025 UK growth forecast (from 2% to 1%) by the OBR despite upgraded GDP growth forecasts for future years and an extra £2.2 billion for defence. While inflation fell to 2.8%, the OBR cautioned that economic uncertainty could derail Reeves' plans. Reeves hinted at maintaining current tax rates but experts anticipate potential autumn hikes, which she has refused to rule out, while prioritizing economic growth instead of tax rises or spending cuts. Her previous budget included major tax increases aimed to bring in an extra £40 billion. Protests are ongoing against Labour's welfare cuts.
