Rachel Reeves to Announce £2 Billion Housing Investment Alongside Welfare Cuts

The UK Chancellor seeks to balance fiscal rules with spending cuts and targeted investments as economic challenges mount.

Rachel Reeves will allocate £2 billion for affordable housing, funding 18,000 homes as part of Labour's broader housing pledge, in an effort to offset backlash over £5 billion in welfare cuts.
The Office for Budget Responsibility is expected to halve the 2025 growth forecast to 1%, further tightening fiscal constraints and reducing Reeves's economic headroom.
Internal Labour Party dissent grows as backbenchers and some cabinet members call for easing fiscal rules rather than pursuing austerity-like measures.
Global risks, including Donald Trump's impending trade tariffs, threaten to worsen borrowing costs and economic growth, potentially undermining the Chancellor's fiscal plans.
Consumer confidence continues to decline, with 58% of Britons believing the economy is worsening, prompting households to cut spending and save more.