Overview

• 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.