Rachel Reeves: world is changing before our eyes

Rachel Reeves: world is changing before our eyes

Chancellor Rachel Reeves:

The 2025 growth estimate for the UK has been halved to 1% from 2% by the government’s official forecaster, the Office for Budget Responsibility.

Delivering her Spring Statement, she says the OBR has updated its longer term growth estimates from next year.

Reeves also said the welfare budget to be cut by £4.8bn overall.

Last week the government unveiled changes to the benefits system, aimed at saving £5bn a year by 2030. But Reeves widens those cuts today after she was told the reforms would save at least £1bn less than planned.

Reeves argues the UK has to ‘move quickly in a changing world’ and will confirm a £2.2bn increase in defence spending.

The Chancellor faces pressure over the performance of the economy, with growth remaining sluggish. This despite being the government’s top priority in order to improve living standards.

Her update on the economy comes after the UK inflation rate fell to 2.8% in the 12 months to February.

Earlier, Defence Secretary John Healey, told BBC Radio 4’s Today programme that Reeves will provide a “tough, strong statement in tough times”, and will say the “world is changing”. The government’s task, he adds, is to “secure Britain’s future”.