Rachel Reeves Faces Criticism Over £14 Billion Spending Cuts and Welfare Reforms

The Chancellor's Spring Statement aims to restore fiscal headroom but draws backlash over poverty impacts and risks of future tax hikes.

Rachel Reeves announced £14 billion in spending cuts and welfare reforms to restore £9.9 billion in fiscal headroom, following downgraded GDP growth forecasts by the OBR.
Impact assessments reveal that the welfare cuts will push 250,000 people, including 50,000 children, into poverty and reduce benefits for three million households.
The OBR warns that Donald Trump’s proposed tariffs could eliminate the fiscal buffer, potentially forcing tax increases or further spending cuts in the autumn budget.
Labour MPs and advocacy groups criticize the measures, with some MPs threatening to oppose the welfare cuts in a May parliamentary vote.
Reeves defends the reforms, asserting they will encourage employment and economic growth, while also committing £2.2 billion to defense spending and planning reforms projected to deliver 1.3 million new homes by 2029.