Chancellor Rachel Reeves will deliver the Spring Statement today, outlining the government’s economic strategy amid sluggish growth, rising inflation, and global trade uncertainties.

While Reeves has ruled out further tax increases, she faces difficult financial choices as the UK struggles with slow economic expansion and increasing borrowing costs. The Office for Budget Responsibility (OBR) will release its latest economic forecast, assessing whether the government is on track to meet its fiscal rules.

Key Announcements:

• Economic Outlook – The OBR is expected to confirm weak growth and rising financial pressures, making it harder to reduce government debt as planned.
• Public Spending & Welfare – The Chancellor has committed to reducing civil service costs by 15%, with around 10,000 job cuts expected. Welfare spending reforms, including stricter benefit assessments, aim to save £5bn annually by 2030.
• Defence & Trade Policy – A £2.2bn increase in defence spending will help meet the UK’s commitment to allocate 2.5% of national income to defence by 2027. Additionally, potential changes to corporate taxation could help avoid new US trade tariffs.
• Tax Policy – Reeves has reaffirmed her position against personal tax rises but may adjust corporate taxes, including the Digital Services Tax on tech giants like Amazon and Meta.

The Chancellor will present the government’s strategy in Parliament at 12:30 PM, with Shadow Chancellor Mel Stride responding for the opposition.