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Have your say: The chancellor’s spring statement is just around the corner, bringing with it new concerns about the future of living standards in the UK

Wednesday 26 March 2025 12:15 EDT
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What to expect from Rachel Reeves' spring statement

Rachel Reeves has delivered her spring statement, fuelling further debate about the economy and living standards in the UK.

The chancellor introduced deeper welfare cuts to meet her borrowing rules. The health element of universal credit for new claimants will be halved and frozen, while the standard allowance will rise more slowly than expected. A £1bn investment aims to help people back into work, but civil service job losses could reach 50,000 as part of £2bn in annual departmental cuts.

To boost growth, Ms Reeves announced £600m to train 60,000 construction workers and pledged £2bn for affordable housing, though Labour is expected to miss its 1.5 million homes target. Defence spending will rise by £2.2bn, bringing the UK closer to its 2.5 per cent GDP goal, funding advanced weaponry and military housing upgrades.

A crackdown on tax avoidance aims to recover £1bn annually, while overall departmental spending will rise by 1.2 per cent above inflation, down from 1.3 per cent. The full impact of cuts will become clearer in June's spending review.

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