Spring statement 2025 live: Rachel Reeves announces where huge budget and welfare cuts will fall

The chancellor confirmed that defense spending would be up to 2.5 percent of GDP as its aid spending reduced to 0.3 percent.

She said it would save the day-to-day expenses by 2029/30 £ 2.6 billion.

Rachel Reeves confirmed that there will be no further tax increases at the Spring statement of today, but promised to continue to crash tax avoidance.

She promised to increase the number of tax fraudsters charged by 20%each year, by £ 1bn. This, she said, will increase the total amount to tackle tax fraud to £ 7.5bn.

There is “nothing progressive” to working people who pay the price of economic irresponsibility, Ms Reeves told the Commons.

‘The British population rely on this government because they knew we would never take risks with the public finances, that we would never do anything to jeopardize their household finances. But we have to earn trust every day. ‘

Her confirmation that no further tax increase will be unveiled today confirms the fear that today’s statement will involve loud cuts, and a possible expansion of the welfare cuts announced last week.

Rachel Reeves promised a suppression of tax evasion.

She delivered her Spring statement today, saying £ 1bn will be brought in as a result.

Rachel Reeves confirmed that no tax increases will be announced in her Spring statement.

She told the Commons: “This statement does not include any further tax increases.”

Chancellor Rachel Reeves said a complete spending review will be published in June.

She added to the Commons: “I will then return to the house to deliver a budget in the fall in accordance with our commitment to deliver just one major fiscal event per year.”

Chancellor Rachel Reeves said there is a need for an ‘active government’ to respond to world events.

Ms Reeves told the Commons: “The threat facing our continent was transformed when Putin invaded Ukraine. It has since escalated and developed further.

‘The task of a responsible government is not just to watch this change. This moment is demanding an active government. ‘ A government that does not withdraw, but acts. A government on the part of working people who help Britain reach its potential.

‘We have the strengths to do so as one of the largest economies in the world, as an ally for trade partners around the world, and as a pivot for global innovation. These strengths and progress we have made so far mean that we can act quickly and decisively in a more uncertain world to protect Britain’s future and to deliver wealth for working people. ‘

Chancellor Rachel Reeves opened her spring statement and said she was “proud” of what the government has delivered since the election.

She told MPs: “This labor government was elected to bring change to our country. To provide security for working people and to deliver a decade of national renewal. The change of change began in July – and I am proud of what we delivered in just nine months.

“Restoring stability to our public finances, which gives the Bank of England the foundation to lower interest rate three times since the general election. The rebuilding of our public services with record investment in our NHS that lowers waiting lists for five consecutive months and increases the national living wage to rise three million people from next week.

“Now our job is to ensure Britain’s future in a world that changes before our eyes.”

Rachel Reeves emphasized the turbulence facing the global economy, which set the scene for the cutting of government departments and further welfare cuts.

“Our job is to ensure Britain’s future in a world that changes before our eyes,” the chancellor told the Commons.

“The threat facing our continent was transformed when Putin entered Ukraine. It has since further escalated and developed rapidly.

“At the same time, the global economy becomes more uncertain, which brings uncertainty home as trading patterns become more unstable and the borrowing costs for many major economies rise.”

Even before the chancellor gets on her feet to give her spring statement, her strategy was attacked by a leading economic Thinktank in the UK.

Ben Caswell, senior economist at the National Institute of Economic and Social Research (NiesR), said: “In a time when clarity and consistency are crucial, it seems that the coming spring statement indicates that it will meet the increasingly complicated and arbitrary fiscal rules, rather than promoting a long-term fiscal strategy for growth.

“These rules do not guarantee fiscal sustainability in an arithmetic sense, but it does create a real incentive to pursue short -term forecasts instead of focusing on long -term economic objectives.”

We will hear a lot about the arbitrary rules that bind the chancellor’s hands as things get worse.