Rachel Reeves will admit that ‘further and faster’ action is needed to start growth in the UK as she delivers her Spring statement.
The Chancellor will give up on Wednesday about her plans for the British economy, as she makes the first Spring statement of the new Labor government.
Prior to the statement, the Office for Budget Repaction (OBR) will publish its forecast on the British economy, which is expected to lower its forecast for economic growth.
While addressing the Commons on Wednesday, Ms Reeves will admit that she has to do more to strengthen the economy as she sets out the most important changes.
“Our job is to secure Britain’s future into a world that changes before our eyes,” she will say.
‘The task of a responsible government is not just to look at this change.
“This moment demands that an active government act to ensure the future of Britain.” A government on the part of working people.
“To understand the opportunities we now have and to help Britain reach its full potential, we need to go further and go faster to start growth, protect national security and make people better through our plan for change.”
The Chancellor will also be forced to act to hold on to her self -imposed rule of daily spending by tax receipts, rather than extra loans. But growing in the lower than expected will result in smaller receipts than previously budgeted.
Ms Reeves will tell MPs that she is proud of her record in office – despite the sluggish economic growth figures that have had her pressure on her.
In the October forecast, the OBR -expected gross domestic product – a measure of the size of the economy – will grow by 2 percent in 2025 and 1.8 percent in 2026, but it is expected to be downgraded.
The government has also borrowed more than previously expected, with the cost of the loans rising – partly due to global turbulence.
Nevertheless, Ms Reeves will say that she is proud of what the government has delivered in its first nine months.
“Restoring the stability of our public finances; gives the Bank of England the foundation to lower interest rates three times since the general election; rebuilding our public services with record investment in our NHS and lowering the waiting lists for five consecutive months; and increasing the national living wage to rise three million people from next week,” she will say.
One announcement to be made by the Chancellor will be an extra £ 2.2bn spent on the UK’s defense the following year.
The extra funding is put on the table, as the government wants to rise to 2.5 percent of the UK by 2027 at 2.5 percent of UK.
Ms Reeves will insist that this plan, set out by the Prime Minister in February, was the ‘real decision in a more unsafe world’, adding: ‘But we must move quickly into a changing world. And it starts with investment. ‘
