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Spring statement live: Rachel Reeves set to slash benefits further to plug £1.6bn budget black hole

UK’s budget watchdog warned last week’s reforms would save over £1bn less than forecast



Chancellor Rachel Reeves' Spring Statement 2025 includes a £14bn package to repair the UK economy with welfare cuts. Reeves refused to rule out further cuts or tax hikes, drawing criticism from Labour MPs. Government analysis suggests the welfare cuts will push 250,000 people, including 50,000 children, into poverty. The OBR also suggests Labour's worker rights plans could negatively impact employment. Reeves disputes the government's poverty impact assessment.

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