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Rachel Reeves has delivered her much anticipated spring statement today.

The chancellor’s 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.

Ms Reeves told MPs “the world has changed” since her first budget just under five months ago, and that was to blame for the string of cuts and downgrades she outlined in the Commons.

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But critics have said today’s update is a direct consequence of her decisions since taking office in July.

Here are the key takeaways from the spring statement:

Economy

The Office for Budget Responsibility (OBR) has halved the UK growth forecast for 2025 from 2% to 1%, Ms Reeves said, adding that she was “not satisfied with these numbers”.

She explained that the government’s budget will move from a deficit of £36.1bn in 2025-26 and £13.4bn in 2026-27, to a surplus of £6bn in 2027-28, £7.1bn in 2028-29 and £9.9bn in 2029-30.

While the short-term growth forecasts appear gloomy, the chancellor said the OBR predicts the economy will be “larger” by the end of the forecast compared with the time of her first budget as a result of her decisions.

The OBR expects output to grow 1% in 2025, by 1.9% next year, 1.8% in 2027, 1.7% in 2028 and by 1.8% in 2029.

Economic growth chart

On living standards, real household disposable income per person is expected to grow by an average of around 0.5 percentage points a year from 2025-26 to 2029-30, led by stronger wage growth and inflation starting to fall later in the forecast period.

Ms Reeves said disposable income will “grow this year at almost twice the rate expected in the autumn”, adding: “Households will be on average over £500 a year better off under this government.”

Welfare chapterhead

The chancellor announced further welfare cuts after being told the reforms announced last week will save less than planned – £3.4bn instead of £5bn.

Among the latest changes to welfare spending, Ms Reeves said the universal credit health element would be cut by 50% and frozen for new claimants rather than rising in line with inflation.

However, the universal credit standard allowance will increase from £92 per week in 2025-26 to £106 per week by 2029-30. The changes will mean a further 150,000 people will not receive carer’s allowance or the carer element of universal credit, according to the government’s own impact assessment.

The OBR has estimated the new welfare savings package will save £4.8bn.

Cuts to welfare will mean 250,000 more people – including 50,000 children – will be pushed into poverty by 2030, the government’s assessment predicts.

Separately, 800,000 people will not receive the daily living component personal independence payment (PIP) – due to tightening eligibility rules.

Defence

The chancellor pledged to “boost Britain’s defence industry and to make the UK a defence industrial superpower”.

She confirmed the government’s pledge to spend 2.5% of GDP by 2027.

The Ministry of Defence will get an additional £2.2bn next year, the chancellor said, which will be spent on new high-tech weaponry, upgrading HM Naval Base in Portsmouth, and refurbishing military family homes, among other things.

The commitment is fully funded, with cash coming from Treasury reserves and also from the decision to slash foreign aid funding.

Taxes

Ms Reeves said the statement does not contain any further tax increases, but highlighted work that needs to be done to tackle tax evasion.

She announced steps to crack down on tax evasion, saying that the government will increase the number of tax fraudsters charged each year by 20%.

She says that reducing tax evasion will raise an extra £1bn for the economy.

Departmental cuts chapterhead

On departmental budgets – which dictate how much different parts of government can spend until 2030 – Ms Reeves said she aims to make the state “leaner and more agile”.

The chancellor also confirmed that a voluntary redundancy scheme is set to launch for civil servants, saying this will deliver £3.5bn in “day-to-day savings by 2029-30”.

Government spending will now grow by an average of 1.2% a year above inflation, compared with 1.3% in the autumn.

Housing

Planning reforms will see house building reach a more than 40-year high by 2030, the chancellor said.

She said the OBR has forecast that the government’s reforms to cut planning red tape will boost house building by 170,000 over the next five years, to 305,000.

This would put the government on track to add around 1.3 million to Britain’s stock of homes in the UK, a rise of 16%, by the end of Parliament.

However, it will fall short of its initial target of 1.5 million houses, the OBR warned, adding that planning reforms will only increase the overall housing stock by 0.5% by the end of 2030.

How have the markets reacted?

The reaction of financial markets to a fiscal event is important, particularly as a poorly received speech can add to government borrowing costs on the bond markets.

The good news for the chancellor here is that yields – the premium demanded by investors to hold UK government debt – dipped slightly in the wake of her remarks.

The yield for UK 30-year bonds, known as gilts, eased by almost 0.1 percentage points to 5.283%.

Similar, but smaller, declines were seen for their 10 and two year counterparts.

The only other market reaction to speak of was a dip in the value of the pound which lost three tenths of a cent against the dollar and the euro.

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Brent shooting: Police name 55-year-old man shot dead in Stonebridge

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Brent shooting: Police name 55-year-old man shot dead in Stonebridge

A man shot dead in northwest London has been named as 55-year-old Simon Whyte.

Detectives from the Metropolitan Police‘s Specialist Crime Team are appealing for witnesses, information and anyone with dashcam footage to come forward following the incident in Stonebridge, Brent, on Friday evening.

They are particularly keen to hear from a small group who were congregated nearby at the time.

Detective Chief Inspector Neil John said his thoughts were with Mr Whyte’s family and friends at this “incredibly difficult time”.

He added: “There’s no doubt this incident will cause concern in the local community and more widely, but we have increased patrols in the area.

“I’d like to reassure the public that our investigation remains a priority.”

He continued: “I would urge anyone who may have witnessed the incident or has information, including dashcam footage, that will assist us with our enquiries to contact us at the earliest opportunity.”

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Police were called just after 9.30pm on Friday to reports of a shooting in West End Close.

Officers administered emergency first aid and the London Ambulance Service attended the incident but Mr Whyte died at the scene.

No arrests have been made.

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Facewatch: The controversial tech that retailers have deployed to tackle shoplifting and violence

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Facewatch: The controversial tech that retailers have deployed to tackle shoplifting and violence

The Christmas period is upon us, and goods are flying off the shelves, but for some reason, the tills are not ringing as loudly as they should be.

Across the country, the five-finger discount is being used with such frequency that retailers are taking action into their own hands.

With concerns about the police response to shoplifting, many are now resorting to controversial facial recognition technology to catch culprits before they strike.

Sainsbury’s, Asda, Budgens and Sports Direct are among the high-street businesses that have signed up to Facewatch, a cloud-based facial recognition security system that scans faces as they enter a store. Those images are then compared to a database of known offenders and, if a match is found, an alert is set off to warn the business that a shoplifter has entered the premises.

It comes as official figures show shoplifting offences rose by 13% in the year to June, reaching almost 530,000 incidents. Figures reported in August showed more than 80% result in no charge.

At the same time, retailers are reporting more than 2,000 cases of violence or abuse against their staff every day. Faced with mounting losses and safety concerns, businesses say they are being forced to take security into their own hands because stretched police forces are only able to respond to a fraction of incidents.

A Facewatch camera
Image:
A Facewatch camera

At Ruxley Manor Garden Centre in south London, managing director James Evans said theft had become increasingly brazen and organised, with losses from shoplifting now accounting for around 1.5% of turnover. “That may sound small, but it represents a significant hit to the bottom line,” he said, pointing out that thousands of pounds’ worth of goods can be stolen in a single visit.

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“We have had instances where the children get sent in to do it. They know that the parents will be waiting in the car park and they’ll know that there’s nothing that we can do to stop them.”

Gurpreet Narwan is seen at the garden centre while being shown how Facewatch works
Image:
Gurpreet Narwan is seen at the garden centre while being shown how Facewatch works

Staff members here have also had their fair share of run-ins with shoplifters. In one case, employees trying to stop a suspected shoplifter were nearly struck by an accomplice in a car. “This is no longer just about stock loss,” said James, “It is about the safety of our staff.”

However, the technology is not without its critics. Civil liberties groups have warned that the expansion of this type of technology is eroding our privacy.

Silkie Carlo, director of Big Brother Watch, called it “a very dangerous kind of privatised policing industry”.

Facewatch is seen in operation as retailers look to crack down on crime.
Image:
Facewatch is seen in operation as retailers look to crack down on crime.

“[It] really threatens fairness and justice for us all, because now it’s the case that just going to do your supermarket shopping, a company is quietly taking your very sensitive biometric data. That’s data that’s as sensitive as your passport, and [it’s] making a judgement about whether you’re a criminal or not.”

Silkie said the organisation was routinely receiving messages from people who said they had been mistakenly targeted. They include Rennea Nelson, who was wrongly flagged as a shoplifter at a B&M store after being mistakenly added to the facial recognition database. Nelson said she was threatened with police action and warned that her immigration status could be at risk.

Gurpreet's profile can be seen on the Facewatch database
Image:
Gurpreet’s profile can be seen on the Facewatch database

“He said to me, if you don’t get out, I’m going to call the police. So at that point I turned around and I was like, are you speaking to me? Then he was like yes, yes, your face set off the alarm because you’re a thief… At that point, I was around six to seven months pregnant and I was having a high-risk pregnancy. I was already going through a lot of anxiety and, so him coming over and shouting at me, it was like really triggering me.”

The retailer later acknowledged the error and apologised, describing it as a rare case of human mistake.

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A spokesperson for B&M said: ‘This was a simple case of human error, and we sincerely apologise to Ms Nelson for any upset caused. Reported incidents like this are rare. Facewatch services are designed to operate strictly in compliance with UK GDPR and to help protect store colleagues from incidents of aggressive shoplifting.”

The cloud-based technology has critics who argue that it amounts to a misuse of personal data and privacy
Image:
The cloud-based technology has critics who argue that it amounts to a misuse of personal data and privacy

Nick Fisher, chief executive of Facewatch, said the backlash was disproportionate.

“Well, I think it’s designed to be quite alarmist, using language like ‘dystopian’, ‘orwellian’, ‘turning people into barcodes’,” he said.

“The inference of that is that we will identify people using biometric technology, hold and store their own, store their data. And that’s just, quite frankly, misleading. We only store and retain data of known repeat offenders, of which it’s been deemed to be proportionate and responsible to do so… I think in the world that we are currently operating in, as long as the technology is used and managed in a responsible, proportionate way, I can only see it being a force for good.”


Rogue retailers exposed in shoplifting crackdown

Yet, there is obviously widespread unease, if not anger, at the proliferation of this technology. Businesses are obviously alert to it, but the bottom line is calling.

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The links between Jeffrey Epstein and the UK revealed in new files

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The links between Jeffrey Epstein and the UK revealed in new files

Jeffrey Epstein led two different lives – sex offender and celebrity networker – and he did that in the UK as well as the US.

The newly released Epstein documents reveal, in particular, how the paedophile financier ascended into the highest levels of British society.

This photo of Andrew Mountbatten-Windsor sprawled across the lap of several women, whose identities have been protected, speaks to his close relationship with Epstein’s former girlfriend Ghislaine Maxwell, who was jailed for child sex trafficking and other offences in connection with Epstein. But the furnishings are even more revealing.

Epstein files – latest updates

Andrew Mountbatten Windsor pictured with Ghislaine Maxwell. Note: inclusion in Epstein files does not infer wrongdoing
Image:
Andrew Mountbatten Windsor pictured with Ghislaine Maxwell. Note: inclusion in Epstein files does not infer wrongdoing

Sky News matched the fireplace in this photo with the one in Sandringham, the estate where the royals tend to spend Christmas – (Andrew is not invited this year).

Andrew has vigorously denied any accusations against him.

Prince Charles, now King Charles III, at Sandringham with Prince Edward. Pic: PA
Image:
Prince Charles, now King Charles III, at Sandringham with Prince Edward. Pic: PA

Also included in the latest release are Epstein’s flight records. They provide some useful corroborating evidence.

A flight log from the Epstein files
Image:
A flight log from the Epstein files

On 9 March 2001, his plane landed at “EGGW” – Luton Airport – with JE, GM and VR on board – Jeffrey Epstein, Ghislaine Maxwell and Virginia Roberts, better known by her married name of Virginia Giuffre and perhaps Epstein’s most famous accuser.

The next day is when this photo was alleged to have been taken, in London, of Giuffre and Andrew.

Prince Andrew, Virginia Roberts, aged 17, and Ghislaine Maxwell at Ghislaine Maxwell's townhouse in London, in March 2001
Image:
Prince Andrew, Virginia Roberts, aged 17, and Ghislaine Maxwell at Ghislaine Maxwell’s townhouse in London, in March 2001

Jeffrey Epstein and Ghislaine Maxwell hunting, date unknown. Pic: US DoJ
Image:
Jeffrey Epstein and Ghislaine Maxwell hunting, date unknown. Pic: US DoJ

Other photos show Maxwell on the steps of Downing Street – and power was as much a draw as celebrity.

Ghislaine Maxwell outside 10 Downing Street, date unknown. Pic: US DoJ
Image:
Ghislaine Maxwell outside 10 Downing Street, date unknown. Pic: US DoJ

On 15 May 2002, the flight records show Epstein again arriving at Luton.

A flight log from the Epstein files
Image:
A flight log from the Epstein files

The next day is when he met Tony Blair, prime minister at the time. This was before Epstein’s first arrest and there is no suggestion of wrongdoing.

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The meeting was arranged by Peter Mandelson, who lost his job as ambassador to the US because of his Epstein connections, and who features prominently in the files.

Peter Mandelson and Jeffrey Epstein. Pic: US DoJ
Image:
Peter Mandelson and Jeffrey Epstein. Pic: US DoJ

The UK was a draw for Epstein’s wider circle too – Maxwell here is pictured touring the Churchill War Rooms with Bill Clinton and Kevin Spacey. Neither are accused of wrongdoing or knowledge of Epstein’s crimes.

(L-R) Ghislaine Maxwell, Kevin Spacey and Bill Clinton, with three other men. Pic: US DoJ
Image:
(L-R) Ghislaine Maxwell, Kevin Spacey and Bill Clinton, with three other men. Pic: US DoJ

And the other grim life that Epstein led, of sex trafficking, also had British links.

A page from the Epstein files
Image:
A page from the Epstein files

Another document released in the files, from 2019, shows witness testimony from Maxwell’s trial. In it, a victim is mentioned who is “17 years old” and who grew up “in England”. She would later be taken to Epstein’s private Caribbean island.

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