Rachel Reeves to Announce Welfare Cuts and Infrastructure Investments in Spring Statement

The UK Chancellor is set to outline £5 billion in welfare cuts, £2 billion in civil service reductions, and defense spending reallocations as economic pressures mount.

Rachel Reeves will deliver the Spring Statement on March 26, confirming £5 billion in welfare cuts and £2 billion in civil service reductions to meet strict fiscal rules.
The Office for Budget Responsibility is expected to halve its 2025 growth forecast from 2% to 1%, exacerbating fiscal challenges.
The government plans to reallocate £6 billion from international aid to defense spending, raising defense expenditure to 2.5% of GDP by 2027.
Infrastructure projects, including the £10 billion Lower Thames Crossing and Northern rail link upgrades, will be prioritized to stimulate economic growth.
Labour MPs and trade unions are voicing strong opposition to austerity measures, warning of potential strikes and political fallout over cuts to public services.