Chancellor Rachel Reeves has presented her Spring Statement in Parliament, marking a significant moment in the government\u2019s economic agenda. Touching on a range of domestic priorities, her speech signals adjustments in spending, public services, and structural reform.<\/p>\n\n\n\n
According to Lancs Live<\/a><\/em>, the measures aim to balance fiscal responsibility with renewed investment, as the UK navigates a complex global landscape and sluggish growth forecasts.<\/p>\n\n\n\n While full details are still being debated, the statement sets out the government\u2019s intended direction across multiple sectors. It reflects both immediate constraints and longer-term ambitions, without offering major surprises or unexpected shifts in policy.<\/p>\n\n\n\n The Chancellor<\/a> confirmed changes to Universal Credit<\/em>, including an increase in the standard allowance from \u00a392 per week in 2025\u201326<\/em> to \u00a3106 per week by 2029\u201330<\/em>. <\/p>\n\n\n\n In parallel, the health element of Universal Credit<\/a> will be cut by 50% and subsequently frozen for new claimants. The OBR estimates the welfare package will result in \u00a33.4 billion in savings, revised from an initial \u00a35 billion projection.<\/p>\n\n\n\n To support the reforms, Reeves announced a \u00a31 billion investment in personalised employment support and a further \u00a3400 million to enhance operational capacity at the Department for Work and Pensions. <\/p>\n\n\n\n The government aims to reduce welfare spending as a share of GDP between 2026 and 2030.<\/p>\n\n\n\n As part of a pivot towards national and economic security, Reeves committed an additional \u00a32.2 billion to the Ministry of Defence<\/em> in the next fiscal year. This allocation is part of a longer-term goal to raise defence spending to 2.5% of GDP, offset by a reduction in overseas aid to 0.3% of gross national income<\/em>.<\/p>\n\n\n\n The Chancellor highlighted that 10% of the defence equipment budget would be directed toward novel technologies<\/strong>, including drones<\/em> and AI-based systems<\/em>. The investment is intended to boost the UK\u2019s defence<\/a> manufacturing base and support high-skilled jobs in cities like Glasgow<\/em>, Derby<\/em>, and Newport<\/em>.<\/p>\n\n\n\n The OBR<\/em> has revised down the UK\u2019s growth forecast for 2025, from 2%<\/strong> to 1%<\/em>. Reeves acknowledged the outlook but maintained that her strategy prioritises fiscal discipline<\/em>, aiming to balance the budget by 2029\u201330 and reduce public debt over the forecast period.<\/p>\n\n\n\n Based on current measures, the Chancellor expects to shift from a \u00a336.1 billion<\/strong> deficit in 2025\u201326 to a \u00a39.9 billion<\/strong> surplus in 2029\u201330, restoring compliance with her \u201cstability rule\u201d two years ahead of schedule.<\/p>\n\n\n\nUniversal Credit Reforms and Welfare Budget Overhaul<\/h2>\n\n\n\n
Defence Spending to Increase Amid Geopolitical Shifts<\/h2>\n\n\n\n
Civil Service Reforms and Public Sector Savings<\/h2>\n\n\n\n