UK Faces Economic Strain with Downgraded Growth and Rising Debt Costs

Chancellor Rachel Reeves's Spring Statement introduces welfare reforms and spending cuts, while Donald Trump's tariffs loom as a new economic threat.

The UK's 2025 growth forecast has been halved from 2% to 1% by the Office for Budget Responsibility (OBR), citing fiscal policies and external risks.
Rachel Reeves announced £14 billion in spending cuts and welfare reforms, but critics argue these measures fail to address structural economic challenges.
Debt interest payments now surpass spending on key public services, with borrowing costs rising sharply due to market pressures and inflation concerns.
Donald Trump's proposed 25% tariffs on non-US cars threaten UK industries, particularly Jaguar Land Rover, with no trade exemptions yet secured.
Labour's fiscal policies, including October's £40 billion tax increase, face criticism for stifling growth and investment, exacerbating the UK's economic challenges.