Spring Statement LIVE as Rachel Reeves to unveil more benefit cuts after unexpected inflation update

Spring Statement will 'reflect a slowing outlook for global growth'

Rachel Reeves told the Cabinet this morning that the Spring Statement will “reflect a slowing outlook for global growth”.

According to a readout issued by Downing Street: “The Chancellor welcomed the fall in inflation this morning and said the Spring Statement followed choices the Government took in the Autumn Budget to fix the foundations of the economy, put record investment in the NHS - delivering five months in a row of falling waiting lists - the rolling out of free breakfast clubs to all primary schools, a £1,400 increase in the National Living Wage for 3 million workers coming in next week, £100 billion of increased capital investment, and a £190 billion increase in day to day spending for public services.

“The Chancellor said the Spring Statement would reflect a slowing outlook for global growth, which underlined the importance of the Government’s growth agenda which had already seen the Government back key projects including Heathrow, East-West Rail, the Old Trafford regeneration, and yesterday’s decision to approve the Lower Thames Crossing.

“The Chancellor said you do not deliver growth by abstaining on these decisions as previous governments had done, but by getting on with delivering the key projects and reforms needed to the UK’s planning system and changing the way the state operates to be more agile and effective, and deliver better value for taxpayers.

“The Chancellor concluded by saying today’s Spring Statement would demonstrate the Government’s plan to deliver higher growth, higher living standards, and better public services, built upon the key foundation of economic stability.”

Spring Statement 'undoing a decade of stagnation' says PM

Speaking at the beginning of Prime Minister’s Questions, half an hour before Rachel Reeves delivers her statement, he said: “Today’s spring statement will showcase a Government going further and faster on the economy, greenlighting the Lower Thames Crossing, investing £2 billion in 18,000 affordable homes for working families, 60,000 young people being trained as the next generation of construction workers, and fixing millions of potholes.

“We’re undoing a decade of stagnation, to bring jobs and opportunities for working people and securing Britain’s future.”

Mobile phone ban in schools 'completely unnecessary' says Starmer

Kemi Badenoch labelled the spring statement an "emergency budget", and quips that Rachel Reeves will "scramble to fix the mess she made last October".

But she turns to the education secretary, and asks why Labour MPs voted against banning phones in schools last week.

Sir Keir Starmer replies: "Because it's completely unnecessary."

Starmer: We should work together to ensure content children access is safe

We should work together to ensure content children is accessing is safe, gthe PM has said.

We should have the right battle on the right issue, Sir Keir said.

Discipline is the number one issue in scholls, Badenoch has argued.

Starmer goes head-to-head with Badendoch at PMQs

Keir Starmer is going head-to-head with Kemi Badenoch at PMQs now.

The Chancellor will then deliver her spring statement immediately after at 12.30pm.

She is expected to announce major cuts, with the prime minister likely to be grilled over the plans.

Why Rachel Reeves isn't holding 'emergency budget' despite Tory claims

The Conservative Party has spend much of the run up to today's statement claiming Rachel Reeves is unveiling an "emergency budget", but this isn't the case.

The Chancellor set out her plans for a Spring Statement several weeks ago, meaning it doesn't fall within the scope of an "emergency" measure. Emergency measures are introduced with minimal, short-term notice. Additionally, the statement isn't expected to make tax policy changes that budgets are usually based on.

'Government's further cuts have no thought to the impact on disabled people'

James Taylor, Director of Strategy at disability equality charity Scope, said: “The government is rushing to make further cuts with no thought to the impact on disabled people. This is on top of billions of pounds in cuts that were the primary motivation for welfare reform.

“This move will further hit disabled people hard and drive even more into poverty. There has to be a better way of reforming welfare than moving from one set of knee-jerk proposals to another.”

Rachel Reeves leaves Downing Street ahead of spring statement

The Chancellor of the Exchequer has left Downing Street to make her way to the Commons for her 12.30pm Spring Statement.

Minutes before, Keir Starner was also seen exiting to make his way to parliament.

Rachel Reeves will be forced to make further welfare cuts as she seeks to balance the books after the budget watchdog said the Government’s plans will not save as much as ministers hoped.

The Chancellor will set out the measures as she delivers her spring statement in response to a gloomy economic assessment by the Office for Budget Responsibility (OBR).

Rachel Reeves will acknowledge she needs to go 'further and faster' to kickstart growth

Rachel Reeves will acknowledge she needs to go “further and faster to kickstart growth”, amid dour predictions about her cost-cutting measures and as she scrambles for savings to help balance the nation’s books without hiking taxes.

The Chancellor will be forced to take action to stick to her rule of meeting day-to-day spending through tax receipts, rather than extra borrowing, in response to gloomy forecasts from the budget watchdog.

The Office for Budget Responsibility (OBR) is widely expected to slash its forecast for economic growth, following similar recent revisions by the Bank of England and the Organisation for Economic Co-operation and Development (OECD).

And the watchdog is said to have warned that cuts to welfare set out in recent weeks have fallen short of the £5 billion savings ministers expected, according to media reports, leaving the Chancellor with a £1.6 billion hole likely to be filled with further cuts.

What has Rachel Reeves done in the run up to today's statement?

Ahead of today's Spring Statement, the Chancellor has:

EXCLUSIVE: I'm too poor to be sick, why is Rachel Reeves trying to break us?'

Around two million Brits could be affected by the cruel welfare cutsLabour proposed last week. They include 1.2 million ­disabled people who will be stripped of eligibility for Personal ­Independence Payments.

Some could lose £10,000 a year if they no longer qualify for the aid and a family member has their care allowance axed as Rachel Reeves tries to save £5billion.

Disabled people fear the cuts will plunge them into poverty and as Ms Reeves prepares to make her Spring Statement today, they here ask her to think again…

Read more: 'I'm too poor to be sick, why is Rachel Reeves trying to break us?'

Inflation expected to rise again in 'Awful April'

Economists are expecting inflation to rise again in the coming months with a sharp increase in April.

Bills such as electricity and water will rise for some households and businesses next month, as well as taxes including council tax and employer national insurance.

“Awful April risks kick-starting inflation again,” Sarah Coles, head of personal finance at Hargreaves Lansdown, said.

“The energy price cap is forecast to go up by £85 to £1,823 – which would be its highest level since the beginning of last year.

“This is on top of rises in everything from water bills – up £123 on average – to council tax – up an average of £109.

“The Bank of England is expecting inflation to peak at 3.7% later this year.”

Explained: What benefit changes were proposed last week?

A tightening of eligibility for the main disability benefit personal independence payment (Pip) and cut to the health element of universal credit (UC) have prompted stark warnings and calls for a rethink.

Changes to Pip are expected to account for the largest proportion of savings, with the Resolution Foundation think tank estimating this could see between 800,000 and 1.2 million people in England and Wales losing support of between £4,200 and £6,300 per year by the end of the decade.

An official impact assessment is expected to be published on Wednesday into the previously-announced changes.

PM: 'National security and economic security go hand in hand'

Chancellor to unveil fresh cuts to sickness and disability benefits

In her Spring Statement, Rachel Reeves will unveil fresh cuts to sickness and disability benefits after the budget watchdog said divisive reforms would save £1.6billion less than planned.In more misery for claimants, the Chancellor is now seeking further cuts to Universal Credit incapacity benefits to make up the shortfall.

The Office for Budget Responsibility (OBR) said ministers had overstated the £5billion a year savings they expected to make by slashing welfare for millions of people. Instead, it judged the figure to be closer to £3.4billion, according to The Times. Ms Reeves is now expected to spell out £500million in additional savings in the Spring Statement today.

It comes after DWP Secretary Liz Kendall last week announced plans to make it harder to claim Personal Independence Payments (PIP), which offer help with living costs for people who have a long-term physical or mental health condition. The reforms also included changes to extra payments for health conditions through Universal Credit.

But the OBR assessment will now force the Government to go further by imposing a freeze on Universal Credit incapacity benefits for new claimants until 2030. There will also be a small reduction in the basic rate of universal credit in 2029, after Kendall increased it by £7 a week.

Disabled charity Scope says calls doubled on day of welfare announcement

Disability charity Scope said calls to its helpline on the day of the announcement had more than doubled to 344 from 118 the week earlier, while its online community saw 20,000 interactions on the day compared to 15,000 seven days before.

Citizens Advice saw views of its Pip advice pages rise to almost 80,000 views last week, which was a 44% rise from the week before.

Scope said people feel “abandoned by the Government”.

Charities have reported a surge in calls and visits to their advice pages

Charities have reported a surge in calls and visits to their advice pages following last week’s announcement, which came after lengthy speculation about what might be in store.

Mental health charity Mind said its helpline advisers had reported that some people had indicated their level of worry was such that they felt they had “no choice but to end their own life”.

The charity’s welfare advice line saw calls rise from 90 the previous week to 182 last week, while other information and support lines received more than 2,540 calls, which was a 10% rise on the previous week.

Key timings for today's Spring Statement

Welfare cuts: Stark warning for under 40s to secure their future

Jacob Falkencrone, Head of Investor Content at Saxo, commented: "The cut to budgets like the welfare budget should be a warning to those under 40 about investing for their future now, in case government support isn't there when you reach retirement. These adjustments reflect a potential shift in governmental priorities, highlighting increasing uncertainty over future safety nets.

"Concerns are growing over the support the government has traditionally provided during retirement, which may not be guaranteed in the future. Therefore, it is now more crucial than ever for those under 40 to proactively invest in their financial security.

"By taking action now, individuals can reduce the potential risks associated with future governmental instability and ensure a more secure and comfortable retirement, regardless of the political and economic outlook.

“If you have longer-term goals when planning for the future, it’s about getting your money to work for you in a smart way. This often starts with investing. Investing allows you to actively grow your money and gives you the best chance to achieve your goals and dreams, especially if your time horizon is greater than a few years and your risk appetite all

Rachel Reeves outlines her 'mission' for 'security for working people'

The Chancellor has laid out her stall ahead of the Spring Statement at 12.30pm.

Her speech is expected to unveil a raft of new benefits cuts and a slashing of public spending, in order to save an estimated £500m.

Tweeting this morning, the Chancellor said: "Security for working people and renewal for our country. That is our mission. And in a changing world we will deliver."

Explained: Defence spending hikes

Expect the Chancellor to set out more details of plans to fund Keir Starmer's vow to hike defence spending last month.

Responding to global volatility and pressure from Donald Trump, the Prime Minister said the UK's spending on defence would increase to 2.5% of GDP by 2027. He described it as the biggest hike in defence spending since the Cold War as he pointed to the dangers posed by Vladimir Putin and Russian aggression.

But in a controversial move the PM announced there would be billions of pounds in cuts to overseas aid to fund the move - prompting outrage from humanitarian groups. Ms Reeves is expected to give details on how the funding will be reallocated to defence.

A line-by-line review was commissioned into all the UK's aid spending as Mr Starmer promised to maintain support to victims of warfare in Gaza, Ukraine and Sudan. But many are dubious about whether this can be achieved, with Anneliese Dodds quitting as development minister in protest.

Ms Dodds hit out at the decision to cut overseas development aid to 0.3% of GNI (gross national income).

Pictured: Cabinet minister arrives at No 10 ahead of statement

Ministers from Keir Starrmer's cabinet have been pictured arriving at Downing Street this morning.

Liz Kendall, the work and pensions secretary - who last week announced sweeping changes to the welfare system, was seen smiling as she walked into Downing Street.

She was followed by health secretary Wes Streeting and Labour's Deputy leader Angela Rayner.

Rachel Reeves will be forced to make further welfare cuts as she seeks to balance the books after the budget watchdog said the Government’s plans will not save as much as ministers hoped.

The Chancellor will set out the measures as she delivers her spring statement in response to a gloomy economic assessment by the Office for Budget Responsibility (OBR).

Reeves will delver a 'tough, strong' Spring Statement

John Healey said Rachel Reeves would deliver a “tough” statement “in tough times” this afternoon as he ruled out easing Labour’s fiscal rules to allow the Government to borrow more money to fund its spending priorities.

Asked how Labour supporters would view that, Mr Healey told BBC Radio 4’s Today programme: “It will be a tough, strong statement in tough times. The Chancellor will set out this afternoon that the world is changing, our task is to secure Britain’s future and that’s why she is making an extra £2.2 billion available for defence.”

Asked why Ms Reeves did not ease her self-imposed rules to allow greater borrowing for defence spending, the Defence Secretary said: “Whichever way you do it, if you borrow more you have to service the cost of that borrowing and if you borrow more the price goes up.

“We are in a situation, nine months into this government, where the overhang of the period of Liz Truss means that our debt levels are still too high, the cost of servicing that debt is too high.

“And the central responsibility – that will be at the heart of the way that Rachel Reeves sets her statement out – of strong public finances, fiscal responsibility in the end will provide the foundation for us to rebuild the economy, rebuild confidence in British investment and then rebuild the public services.”

Inflation figures highlight Labour mission to 'kickstart growth and raise living standards' - Treasury Secretary

Treasury chief secretary Darren Jones has reacted to the inflation news by reiterating Labour's jobs pledge.

He said: "Our number one mission is kickstarting growth to raise living standards for working people, that is why we are protecting working people’s payslips from higher taxes.

"In a changing world, we’re focused on delivering economic stability to secure people’s finances – freezing fuel duty, protecting the triple lock and increasing the national living wage by £1,400 a year for full-time workers, while going further and faster to drive growth through our plan for change. ”

Chancellor to stress importance of national security 'in a more insecure world'

In her springstatement, the Chancellor will tell MPs that a “more insecure world” requires a greater focus on national security, with a promise to increase defence spending by £2.2 billion from April as part of the previously announced plan for the biggest boost in military funding since the Cold War funded by cutting the aid budget.

She will say: “This moment demands an active government stepping up to secure Britain’s future. A government on the side of working people.

“To grasp the opportunities that we now have and help Britain reach its full potential, we need to go further and faster to kickstart growth, protect national security and make people better off through our plan for change.”

Ms Reeves will tell MPs she is “proud” of her record in office – despite the sluggish economic growth figures which have heaped pressure on her.

Reeves to set out plan to save further £500m

With mounting unease on the Labour benches about the scale of the welfare cuts, The Times reported that Ms Reeves will not attempt to make up the entirety of the £1.6 billion shortfall but will instead set out plans to save a further £500 million.

Universal credit incapacity benefits for new claimants will now be frozen until 2030 rather than increased in line with inflation and there will also be a small reduction in the basic rate in 2029, the newspaper reported.

Alongside the statement, the Government will release an impact assessment indicating how many people will be hit by the previously announced plans to cut the welfare bill.

Changes to welfare system will bring 'longer term savings' says Defence Secretary

A Cabinet minister appeared to confirm that further cuts to welfare spending will be required because the budget watchdog has said previously-announced measures will not save the £5 billion a year expected by 2030.

The Office for Budget Responsibility is reported to have concluded the measures will cut the bill by £3.4 billion, with Rachel Reeves expected to announce further measures to save a further £500 million.

Defence Secretary John Healey told Times Radio: “That’s a calculation we may see confirmed by the Office for Budget Responsibility about the longer-term savings that our plans to change the welfare system may bring.

“That’s a must-do for any responsible government, particularly one that believes in the importance of our social security system.”

Mr Healey said: “You can’t have a benefits system that is failing people and out of control in this way.

“That’s why the plans that (Work and Pensions Secretary) Liz Kendall laid out last week, and that you’ll hear more from the Chancellor this afternoon in the springstatement, are so important.

“We want the social security system to work. It’s got to be there to support the poorest, but it’s also got to be there to make sure those who can work are able to do so.”

Keir Starmer says government will deliver 'security for working people'

Ahead of the spring statement, Keir Starmer said: “In an era of global change, we will deliver security for working people and renewal for Britain.”

The Office for Budget Responsibility is reported to have concluded the Chancellor's measures will cut the bill by £3.4 billion, with Rachel Reeves expected to announce further measures to save a further £500 million.

In an era of global change, we will deliver security for working people and renewal for Britain.

Rachel Reeves should prioritise hiking spending on public services, voters say

Rachel Reeves should prioritise increased spending on public services, a new poll shows.

It comes as the Chancellor prepares to deliver the Spring Statement on Wednesday amid fears unprotected government departments will see spending squeezed.

The survey for the Autonomy think-tank asked voters which of four areas - public services, the military, clean energy, or a Universal Basic Income - should be prioritised. Over half - 53% - ranked public services such as health, education and policing, first.

Almost 20% opted for clean energy - including savings on energy bills - while 16% said the military should be prioritised in the survey by Survation pollsters.

Just over one in ten (12%) said the government should prioritise Universal Basic Income, which typically involves giving all citizens a flat-rate payment.

Read more: Rachel Reeves should prioritise hiking spending on public services, voters say

Spring Statement 2025 predictions - everything Rachel Reeves could announce today

Rachel Reeves will deliver her long-awaited Spring Statement on Wednesday, with tens of thousands of public service jobs expected to be slashed.

The Chancellor will unleash £2billion of spending cuts across Whitehall, with around 10,000 civil servants set for the chop. She and Keir Starmer already face a revolt over swingeing disability benefit changes. Fresh plans to cut back on benefits spending will be unveiled today, on top of huge changes announced last week.

Addressing the Commons at around 12.30pm, she will argue the world has changed since she delivered her first Budget in October. A raft of measures will include a hike in defence spending about amid growing fears over Russian aggression.

Read more: Spring Statement 2025 predictions - everything Rachel Reeves could announce today