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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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Care whistleblower ‘who saw elderly resident being punched’ could face removal from Britain

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Care whistleblower 'who saw elderly resident being punched' could face removal from Britain

A care worker who reported the alleged abuse of an elderly care home resident, which triggered a criminal investigation, is facing destitution and potential removal from Britain after speaking up.

“Meera”, whose name we have changed to protect her identity, said she witnessed an elderly male resident being punched several times in the back by a carer at the home where she worked.

Sky News is unable to name the care home for legal reasons because of the ongoing police investigation.

“I was [a] whistleblower there,” said Meera, who came to the UK from India last year to work at the home.

“Instead of addressing things, they fired me… I told them everything and they made me feel like I am criminal. I am not criminal, I am saving lives,” she added.

Meera
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‘Meera’ spoke up about abuse she said she witnessed in the care home where she worked

Like thousands of foreign care workers, Meera’s employer sponsored her visa. Unless she can find another sponsor, she now faces the prospect of removal from the country.

“I am in trouble right now and no one is trying to help me,” she said.

More on Migrant Crisis

Meera said she reported the alleged abuse to her bosses, but was called to a meeting with a manager and told to “change your statement, otherwise we will dismiss you”.

She refused. The following month, she was sacked.

The care home claimed she failed to perform to the required standard in the job.

She went to the police to report the alleged abuse and since then, a number of people from the care home have been arrested. They remain under investigation.

‘Migrants recruited because many are too afraid to speak out’

The home has capacity for over 60 residents. It is unclear if the care home residents or their relatives know about the police investigation or claim of physical abuse.

Since the arrests, the regulator, the Care Quality Commission (CQC), carried out an investigation at the home triggered by the concerns – but the home retained its ‘good’ rating.

Meera has had no reassurance from the authorities that she will be allowed to remain in Britain.

In order to stay, she’ll need to find another care home to sponsor her which she believes will be impossible without references from her previous employer.

She warned families: “I just want to know people in care homes like these… your person, your father, your parents, is not safe.”

She claimed some care homes have preferred to recruit migrants because many are too afraid to speak out.

“You hire local staff, they know the legal rights,” she said. “They can complain, they can work anywhere… they can raise [their] voice,” she said.

Becky Johnson
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Sky’s Becky Johnson spoke to ‘Meera’

Sky News has reported widespread exploitation of care visas and migrant care workers.

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More than 100 migrants face being in UK illegally
Immigration crackdown will fuel ‘exodus’ of nurses
New English language and UK citizenship requirements for migrants

Currently migrants make up around a third of the adult social care workforce, with the majority here on visas that are sponsored by their employers.

As part of measures announced in April in the government’s immigration white paper, the care visa route will be closed, meaning care homes will no longer be able to recruit abroad.

‘Whole system is based on power imbalance’

But the chief executive of the Work Rights Centre, a charity that helps migrants with employment issues, is warning that little will change for the tens of thousands of foreign care workers already here.

“The whole system is based on power imbalance and the government announcement doesn’t change that,” Dr Dora-Olivia Vicol told Sky News.

She linked the conditions for workers to poor care for residents.

Dr Dora
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Work Rights Centre CEO Dr Dora-Olivia Vicol

“I think the power that employers have over migrant workers’ visas really makes a terrible contribution to the quality of care,” she said.

Imran agrees. He came to the UK from Bangladesh, sponsored by a care company unrelated to the one Meera worked for. He says he frequently had to work 14-hour shifts with no break because there weren’t enough staff. He too believes vulnerable people are being put at risk by the working conditions of their carers.

Migrant workers ‘threatened’ over visas

“For four clients, there is [a] minimum requirement for two or three staff. I was doing [it] alone,” he said, in broken English.

“When I try to speak, they just directly threaten me about my visa,” he said.

“I knew two or three of my colleagues, they are facing the same issue like me. But they’re still afraid to speak up because of the visa.”

Meera

A government spokesperson called what happened to Imran and Meera “shocking”.

“No one should go to work in fear of their employer, and all employees have a right to speak up if they witness poor practice and care.”

James Bullion, from the CQC, told Sky News it acts on intelligence passed to it to ensure people stay safe in care settings.

Additional research by Leah Adin

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Donald Trump may be denied privilege of addressing parliament on UK state visit

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Donald Trump may be denied privilege of addressing parliament on UK state visit

Donald Trump may be denied the honour of addressing parliament on his state visit to the UK later this year, with no formal request yet submitted for him to be given that privilege.

It comes after President Macron’s successful state visit this week, in which he was invited to speak in front of both Houses of Parliament.

Sky News has been told the Speaker of the House of Commons, Sir Lindsay Hoyle, hasn’t so far received a request to invite the US president to speak in parliament when he is expected to visit in September.

It was confirmed to MPs who have raised concerns about the US president being allowed to address both houses.

Kate Osborne, Labour MP for Jarrow and Gateshead East, wrote to the speaker in April asking him to stop Mr Trump from addressing parliament, and tabled an early-day motion outlining her concerns.

“I was happy to see Macron here but feel very differently about Trump,” she said.

“Trump has made some very uncomfortable and worrying comments around the UK government, democracy, the Middle East, particularly around equalities and, of course, Ukraine.

“So, I think there are many reasons why, when we’re looking at a state visit, we should be looking at why they’re being afforded that privilege. Because, of course, it is a privilege for somebody to come and address both of the houses.”

But the timing of the visit may mean that any diplomatic sensitivities, or perceptions of a snub, could be avoided.

Macron addressing Parliament
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France’s President Emmanuel Macron addressed parliament during his state visit this month

Lord Ricketts, a former UK ambassador to France, pointed out that parliament isn’t sitting for much of September, and that could help resolve the issue.

In 2017, he wrote a public letter questioning the decision to give Donald Trump his first state visit, saying it put Queen Elizabeth II in a “very difficult position”.

Parliament rises from 16 September until 13 October due to party conferences.

The dates for the state visit haven’t yet been confirmed by Buckingham Palace or the government.

However, they have not denied that it will take place in September, after Mr Trump appeared to confirm they were planning to hold the state visit that month. The palace confirmed this week that the formal planning for his arrival had begun.

With the King likely to still be in Scotland in early September for events such as the Braemar Gathering, and the anniversary of his accession and the death of Queen Elizabeth on the 8th September, it may be expected that the visit would take place sometime from mid to the end of September, also taking into consideration the dates of the Labour Party conference starting on the 28th September and possibly the Lib Dem’s conference from the 20th-23rd.

Donald Trump. Pic: Reuters
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Mr Trump has said he believes the trip to the UK will take place in September. Pic: Reuters

When asked about parliamentary recess potentially solving the issue, Ms Osborne said: “It may be a way of dealing with it in a very diplomatic way… I don’t know how much control we have over Trump’s diary.

“But if we can manoeuvre it in a way that means that the House isn’t sitting, then that seems like a good solution, maybe not perfect, because I’d actually like him to know that he’s not welcome.”

A message from the speaker’s office, seen by Sky News, says: “Formal addresses to both Houses of Parliament are not automatically included in the itinerary of such a state visit.

“Whether a foreign head of state addresses parliament, during a state visit or otherwise, is part of the planning decisions.”

The King and Mr Trump raising a toast in 2019. Pic: Reuters
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Mr Trump made his first state visit to the UK in June 2019 during his first presidency. File pic: Reuters

It’s understood that if the government agrees to a joint address to parliament, the Lord Chamberlain’s office writes to the two speakers, on behalf of the King, to ask them to host this.

It will be Mr Trump’s second state visit.

During his first, in 2019, he didn’t address parliament, despite the fact that his predecessor, Barack Obama, was asked to do so.

It was unclear if this was due to the fact John Bercow, the speaker at the time, made it clear he wasn’t welcome to do so.

However, it didn’t appear to dampen Mr Trump’s excitement about his time with the Royal Family.

Read more from Sky News:
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Officers who confronted Southport killer win bravery award

Speaking earlier this year, he described his state visit as “a fest” adding “it’s an honour… I’m a friend of Charles, I have great respect for King Charles and the family, William; we have really just a great respect for the family. And I think they’re setting a date for September.”

It is expected that, like Mr Macron, the pageantry for his trip this time will revolve around Windsor, with refurbishment taking place at Buckingham Palace.

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Liverpool retires number 20 shirt at all levels in honour of Diogo Jota

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Liverpool retires number 20 shirt at all levels in honour of Diogo Jota

Liverpool have retired the number 20 shirt in honour of Diogo Jota – the first time it has made such a gesture.

The club said it was a “unique tribute to a uniquely wonderful person” and the decision was made in consultation with his wife and family.

The number 20 will be retired at all levels, including the men’s and women’s first teams and academy squads.

A statement said: “It was the number he wore with pride and distinction, leading us to countless victories in the process – and Diogo Jota will forever be Liverpool Football Club’s number 20.”

The club called it a “recognition of not only the immeasurable contribution our lad from Portugal made to the Reds’ on-pitch successes over the last five years, but also the profound personal impact he had on his teammates, colleagues and supporters and the everlasting connections he built with them”.

Jota's wife joined Liverpool players to view tributes at Anfield on Friday. Pic: Liverpool FC
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Jota’s wife joined Liverpool players to view tributes at Anfield on Friday. Pic: Liverpool FC

Pic: Liverpool FC
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Pic: Liverpool FC

Newly-married Jota died alongside his brother when his Lamborghini crashed in northern Spain on 3 July.

Police said this week that all the evidence so far suggests Jota was the one driving the vehicle.

Liverpool teammates joined members of Jota’s family, including his wife Rute, at a huge memorial site outside Anfield on Friday.

Read more from Sky News:
Mystery in space is most likely ‘oldest comet ever seen’
Trump may be denied privilege of addressing parliament

A fan looks at messages written onto a memorial wall created near Anfield Stadium. Pic: Reuters
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A fan looks at messages on a memorial wall near Anfield. Pic: Reuters


Liverpool's captain Virgil van Dijk and Liverpool's player Andrew Robertson arrive on the day of the funeral ceremony of Liverpool's Portug
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Virgil van Dijk and Andy Robertson were among players at the funeral. Pic: Reuters

The star’s funeral took place last weekend, with Liverpool colleagues and members of the Portuguese national team in attendance.

Reds captain Virgil van Dijk carried a shirt bearing the number 20 made from flowers.

Liverpool players returned to the club’s training ground for the start of pre-season on Tuesday.

Their first game since Jota’s death will be on Sunday when they play a friendly away against Preston North End.

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