When is the spring statement – and what do you need to know about it?
Chancellor Rachel Reeves is poised to deliver an update on the health of the British economy on Wednesday.
The spring statement is not a formal budget – as Labour pledged to only deliver one per year – but rather an update on the economy and any progress since her fiscal statement last October.
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While it’s not billed as a major economic event, Rachel Reeves has a big gap to plug in the public finances and speculation has grown she may have to break her self-imposed borrowing rules.
Here, Sky News explains everything you need to know.
What is the spring statement?
The spring statement is an annual speech made by the chancellor in the House of Commons, in which they provide MPs with an update on the overall health of the economy and Office for Budget Responsibility (OBR) forecasts.
It is one of two major financial statements in the financial year – which runs from 1 April to 31 March.
The other is the autumn budget, a more substantial financial event in which the chancellor sets out a raft of economic policy for the year ahead.
Typically, the spring statement – which was first delivered by ex-chancellor Phillip Hammond in 2018 – gives an update on the state of the economy, and details any progress that has been made since the autumn budget.
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Sam Coates previews the chancellor’s announcements
What could be announced?
The government has already announced some big cuts – and there may be more to come.
Ms Reeves could decide to extend the freeze on thresholds at which people start to pay different rates of income tax, beyond the current freeze, which is due to end in April 2028.
The government could also raise the relief rate for struggling retail, hospitality, and leisure businesses after cutting it to 40% in the October budget.
The chancellor is expected to announce £400m in spending on the government’s new UK Defence Investment body to “harness UK ingenuity and boost military technology”, according to The Mirror.
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She has been called on to reduce the £20,000 tax-free annual limit on cash ISAs to £4,000 to encourage more people to invest their savings in stocks and shares – a move that could hurt cash ISA savers.
To read more on what is expected to be announced in the Spring Statement, and what has already been announced, check out Sky News political reporter Alix Culbertson‘s piece here.
When will Rachel Reeves deliver it?
The OBR, which monitors the government’s spending plans, will publish its forecast on the UK economy on 26 March.
It is required to produce two economic forecasts a year, but the chancellor said she would only give one budget a year to provide stability and certainty on upcoming tax changes.
The OBR will also provide an estimate on the cost of living for British households, and detail whether it believes the Labour government will adhere to its own rules on borrowing and spending.
The chancellor will then present the OBR’s findings to the House of Commons, and make her first spring statement.
This will be responded to by either Conservative leader Kemi Badenoch or shadow chancellor Mel Stride.
Rachel Reeves is looking to plug gaps in the UK’s finances. Pic: PA
Why does it matter?
The UK economy is thought to be underperforming – potentially due to global factors, like Donald Trump’s trade tariffs – and there are rumours that the chancellor could consider breaking her own rules on borrowing in response.
The economy contracted slightly in January, while inflation has climbed to a 10-month high of 3%. Meanwhile, the government has committed to boosting defence spending to 2.5% of GDP by 2027 – an expensive task.
Ms Reeves’s fiscal rules mean she cannot borrow for day-to-day spending – leaving cuts as one of her only options. Her other “non-negotiable” is to get debt falling as a share of national income by the end of this parliament.
It is expected that welfare cuts will be part of the spring statement package to help the chancellor come within her borrowing limit.
Our deputy political editor Sam Coates said earlier in March there would be a “four-point plan” involving planning reform, Whitehall cuts, regulation cuts and welfare cuts. The government has already announced NHS England will be scrapped.
In short, the Treasury believes Ms Reeves must maintain £10bn in headroom after months of economic downturn and geopolitical events since last October’s budget.
It is widely expected the OBR will confirm that this financial buffer has been wiped clean.
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Where can I watch the spring statement?
The spring statement will be delivered in the House of Commons on Wednesday 26 March, directly after Prime Minister’s Questions, which is usually finished by around 12.30pm.
You’ll be able to keep up to date on Sky News – and follow live updates in the Politics Hub.
Efforts to pass crypto legislation in the US Senate face mounting resistance amid growing ethical concerns around US President Donald Trump’s ties to crypto.
In a May 5 letter to the Office of Government Ethics, Senators Elizabeth Warren and Jeff Merkley said that Trump and his family stand to personally profit from an investment involving UAE state-backed firm MGX, crypto exchange Binance and World Liberty Financial (WLFI).
The senators called for an urgent probe, warning the deal may violate the US Constitution’s Emoluments Clause and federal bribery statutes.
At the center of the controversy is WLFI’s USD1 stablecoin, reportedly chosen for a $2 billion investment MGX plans to make into Binance.
The senators said the transaction amounts to a potential backdoor for foreign influence and self-enrichment, with Trump’s allies allegedly set to receive hundreds of millions of dollars:
“This deal raises the troubling prospect that the Trump and Witkoff families could expand the use of their stablecoin as an avenue to profit from foreign corruption.”
Further complicating ethics concerns, Trump hosted a $1.5 million-per-plate dinner on May 5 at his golf club in Sterling, Virginia. The event came just days after hosting a $1 million-per-plate fundraiser for the MAGA super PAC.
He also plans to hold a gala dinner with major Official Trump (TRUMP) memecoin holders on May 22, despite multiple US lawmakers expressing concerns.
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GENIUS Act faces roadblocks
The Trump family’s controversial $2 billion crypto deal comes as the Senate prepares to vote on the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act and other crypto-related bills.
The fallout is already being felt in Congress. Some Democratic lawmakers are pushing for additional hearings before advancing any legislation, while others question whether Trump’s personal stake in digital assets is undermining bipartisan support for crypto regulation.
On May 5, Senate Majority Leader John Thune signaled a willingness to amend the GOP-backed stablecoin legislation to pass the bill in the coming weeks.
Speaking to reporters, Thune said changes can be made on the floor and that he is waiting to hear what Democrats are asking for, per a report from Politico.
Internal GOP challenges also remain, with Senator Rand Paul expressing uncertainty about backing the bill, according to the report.
The stalling isn’t limited to the Senate. House Financial Services Committee ranking member Representative Maxine Waters plans to block a Republican-led event discussing digital assets on May 6.
The hearing, “American Innovation and the Future of Digital Assets,” will discuss a new crypto markets draft discussion paper pitched by the House agricultural and financial services committee chairs, Representatives Glenn Thompson and French Hill, respectively.
Related: Elizabeth Warren joins call for probe of Trump over crypto tokens
Crypto community slams political pushback
Prominent crypto figures are speaking out as political resistance threatens to derail stablecoin legislation in the Senate.
“Elizabeth Warren and Chuck Schumer haven’t learned their lesson,” Tyler Winklevoss, co-founder of Gemini, posted on X.
“If they want Democrats to continue losing elections, they will continue standing in front of crypto legislation like the stablecoin bill which they are stalling out in the Senate.”
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Alex Mashinsky, the founder and former CEO of bankrupt crypto lending platform Celsius, has blasted the government’s 20-year “venom-laced” sentence request, declaring it a “death-in-prison sentence.”
The US Department of Justice requested Mashinsky receive at least 20 years behind bars in the May 8 sentencing for his role in misleading Celsius users and profiting from the price manipulation of Celsius (CEL), which would make the 59-year-old 79 if he serves the whole sentence.
Lawyers acting for Mashinsky argued in a May 5 reply memorandum filed in a New York district court that he should receive no more than 366 days, because the DOJ hasn’t taken into account his status as a nonviolent first-time offender with a previously unblemished 30-year history in business.
“The government’s venom-laced submission recasts this case as one involving a predator with an intent to target victims, harm them, and steal their money,” they said.
“It concludes by recommending that a first time, nonviolent offender who pled guilty and accepts responsibility receive a death-in-prison sentence.”
Mashinsky pleaded guilty to two out of seven charges
As part of a plea agreement, Mashinsky pleaded guilty in December 2024 to commodities fraud and manipulating the price of CEL, earning $48 million by selling his holdings before Celsius collapsed in June 2022. Prosecutors initially filed seven charges in July 2023.
Lawyers acting for Mashinsky allege the DOJ’s push for a 20-year sentence is because their client is unwilling to “capitulate to the government’s exaggerated characterizations of his actions,” specifically that he was a “fraud from the get-go.”
“Alex is inserted as the scapegoat for every corporate action, every group decision, every unanimous vote, every market fluctuation, and every employee’s watercooler speculation,” they said.
As part of its April 28 sentencing request, the DOJ said Mashinsky’s guilty plea showed that his crimes were deliberate, calculated decisions to lie, deceive and steal.
Days earlier on April 23, US federal prosecutors also filed statements from hundreds of victims who lost money due to the Celsius collapse. They detailed how some had entrusted their life savings to the protocol, believing Mashinsky’s assurances that it was safe.
Related: What do crypto users want to happen to Alex Mashinsky?
Celsius filed for Chapter 11 bankruptcy on July 13, 2022, owing $4.7 billion to creditors after halting withdrawals in June, citing volatile market conditions.
In November 2023, a US bankruptcy court approved Celsius’ restructuring plan to repay customers, and in August 2024, $2.53 billion was paid to 251,000 creditors.
Former Celsius chief revenue officer Roni Cohen-Pavon also pleaded guilty in September 2023 to similar charges, but his Dec. 11 sentencing has been delayed until after Mashinsky is sentenced.
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A Russian-Israeli citizen allegedly involved in the $190 million Nomad bridge hack will soon be extradited to the US after he was reportedly arrested at an Israeli airport while boarding a flight to Russia.
Alexander Gurevich will be investigated for his alleged involvement in several “computer crimes,” including laundering millions of dollars and transferring stolen property allegedly connected to the Nomad Bridge hack in 2022, The Jerusalem Post reported on May 5.
Gurevich returned to Israel from an overseas trip on April 19 but was ordered to appear before the Jerusalem District Court for an extradition hearing soon after, according to the report.
On April 29, Gurevich changed his name in Israel’s Population Registry to “Alexander Block” and received a passport under that name at Israel’s Ben-Gurion Airport the next day.
He was arrested at the same airport two days later, on May 1, while waiting to board a flight to Russia.
Gurevich allegedly identified a vulnerability in the Nomad bridge, which he exploited and stole roughly $2.89 million worth of tokens from in August 2022.
Dozens of copycat hackers discovered and capitalized on the security vulnerability soon after, leading to a total loss of $190 million.
Gurevich allegedly reached out to a Nomad executive on Telegram
Prosecutors allege that shortly after the hack, Gurevich messaged Nomad’s chief technology officer, James Prestwich, on Telegram using a fake identity, admitting that he had been “amateurishly” seeking a crypto protocol to exploit.
He allegedly apologized for “the trouble he caused Prestwich and his team” and voluntarily transferred about $162,000 into a recovery wallet the company had set up.
Prestwich told Gurevich that Nomad would pay him 10% of the value of the assets he had stolen, to which Gurevich responded that he would consult his lawyer. However, Nomad never heard back from him after that.
At some point during the negotiations, Gurevich demanded a reward of $500,000 for identifying the vulnerability.
Related: Do Kwon is in US custody after extradition battle
US federal authorities filed an eight-count indictment against Gurevich in the Northern District of California on Aug. 16, 2023, in addition to obtaining a warrant for his arrest. California is where the team behind the Nomad bridge is based.
The US submitted a formal extradition request in December 2024, the Post noted.
The money laundering charges that Gurevich faces carry a maximum of 20 years, significantly harsher than what he would face in Israel.
Gurevich is believed to have arrived in Israel a few days before the $190 million exploit occurred, prompting Israeli officials to believe he carried out the attack while in Israel.
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