Overview

• The Office for Budget Responsibility (OBR) downgraded the UK's 2025 growth forecast from 2% to 1%, citing fiscal policies and external economic pressures.
• Rachel Reeves' Spring Statement announced £14 billion in spending cuts and welfare reforms, but critics argue these measures are insufficient and risk increasing poverty.
• Debt servicing costs have surged to £105 billion annually, surpassing spending on defense, policing, and prisons combined, with further increases projected by 2030.
• Donald Trump's newly announced 25% tariff on non-US-made cars threatens UK exports, particularly Jaguar Land Rover, complicating the UK's fiscal and trade outlook.
• Reeves' reliance on fiscal rules and high taxation is criticized for stifling economic growth, limiting private sector investment, and leaving little room for economic flexibility.