Overview

• 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.