Talk of tough choices ahead, an increase in debt financing, and more initiatives to promote growthThe spring statement offers an opportunity for Rachel Reeves to talk about progress since last October’s budget, the government’s growth agenda and how it is attempting to raise living standards. However, the chancellor’s message is likely to be defensive after being blown off course in recent months.Last year she promised “no return to austerity”. But after stalled tax receipts denied her the income she expected, and concerns over the global economy and Donald Trump’s antics raised the UK’s borrowing costs, Reeves is being forced to make cuts to stay within her budget rules. Here is what to expect from Reeves’s speech, which is predicted to be relatively short at just 25 minutes. Continue reading...
Rachel Reeves's spring statement 2025 will focus on progress since the autumn budget and the government's growth agenda, while also announcing more funding for 18,000 new social and affordable homes. Due to lower tax receipts and increased borrowing costs, Reeves will announce spending cuts to stay within budget, impacting unprotected departments. The predicted growth rate is expected to be cut from 2% to 1%. Reeves will emphasize growth initiatives but is not expected to address pressure on local government budgets.
