Rachel Reeves to Address OBR Forecast in Labour's First Spring Statement

The chancellor is expected to outline measures addressing fiscal rule challenges, with recent welfare cuts, NHS restructuring, and defence spending plans shaping the economic agenda.

The Spring Statement, scheduled for 26 March 2025, will include an economic forecast from the Budget Responsibility (OBR), highlighting challenges in meeting fiscal rules.
Labour has announced £5 billion in welfare cuts by 2029/30, targeting health-related benefits, as part of broader efforts to reduce public spending.
The government plans to scrap NHS England, centralizing decision-making under the Department for Health, resulting in 9,000 job losses and £100 million in savings.
Speculation surrounds potential tax changes, including the extension of income tax threshold freezes, which could increase the tax burden through fiscal drag.
Labour aims to increase defence spending to 2.5% of GDP by 2027, reallocating funds from international aid to meet this commitment.