Spring statement 2025 key takeaways
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.
Politics latest: Follow live updates
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:
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.
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.”
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.
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.
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.
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.
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.
A British grandmother has died after contracting rabies from a “slight scratch” from a puppy during a holiday in Morocco, her family has said.
Yvonne Ford’s daughter said she travelled to the North African country in February but did not become ill until two weeks ago.
Robyn Thomson said in a Facebook post: “Our family is still processing this unimaginable loss, but we are choosing to speak up in the hope of preventing this from happening to others.
“She was scratched very slightly by a puppy in Morocco in February. At the time, she did not think any harm would come of it and didn’t think much of it.
“Two weeks ago she became ill, starting with a headache and resulted in her losing her ability to walk, talk, sleep, swallow. Resulting in her passing.”
Yvonne Ford went to Morocco in February, her family said. Pic: Facebook
Ms Ford, from Barnsley, South Yorkshire, was diagnosed with the virus at Barnsley Hospital.
The UK Health Security Agency (UKHSA) said health workers and close contacts were being assessed and offered vaccination when necessary.
It said there was no risk to the wider public because there is no evidence rabies can be transmitted between people.
What is rabies and how is it treated?
Rabies is caused by a virus invading the central nervous system.
It is spread by mammals – such as cats, dogs, bats, raccoons and foxes – but in the UK it’s only found in some bats, according to the NHS.
Once symptoms appear, it is almost always fatal, according to the World Health Organisation (WHO).
The first symptoms can mirror a flu, while later symptoms include numbness or tingling in the affected area, hallucinations, anxiety, difficulty swallowing or breathing, nausea, vomiting, agitation, excessive saliva and paralysis.
But if seen to promptly after a bite, scratch or lick by an animal that may carry the virus, treatment is usually very effective at preventing the condition.
Treatment usually involves two or more doses of the rabies vaccine or a medicine called rabies immunoglobulin, which is a liquid administered to the wound and is only required if the patient has not had the rabies vaccine or has a weakened immune system.
The rabies vaccine is recommended if you’re travelling to a part of the world where rabies is more common.
Around 60,000 people die every year from rabies worldwide, with the majority in Africa and Asia, according to the WHO.
Read more about rabies, and how to avoid getting it, here.
Dr Katherine Russell at the UKHSA said: “I would like to extend my condolences to this individual’s family at this time.
“If you are bitten, scratched or licked by an animal in a country where rabies is found then you should wash the wound or site of exposure with plenty of soap and water and seek medical advice without delay in order to get post-exposure treatment to prevent rabies.”
The UKHSA urges travellers to rabies-affected countries, for example in Asia and Africa, to avoid contact with dogs, cats and other animals wherever possible and check whether a vaccination is needed before travelling.
Read more from Sky News:
Met Office: UK could see temperatures of 46C
Kneecap rapper appears in court on terror charge
There have been six cases of human rabies associated with animal exposure abroad that have been reported in the UK between 2000 and 2024.
This includes a case in 2012, when a UK resident died after being bitten by a dog – the most common source of infection in most parts of the world – in South Asia.
The latest case was in 2018, when another Briton died after being bitten by a cat in Morocco.
Latest World Health Organisation figures show a number of deaths from rabies in Morocco have been reported every year from 2010 to 2022.
Rabies does not circulate in either wild or domestic animals in the UK, although some species of bats can carry a rabies-like virus. No human cases of rabies acquired in the UK from animals other than bats have been reported since 1902.
The grieving mother of a Scottish teenager who vanished for almost five weeks has told Sky News she believes a “third party” was involved in her son’s death – but police say there’s “no evidence” of that.
Cole Cooper, 19, was discovered dead in woods near Falkirk earlier this month following a missing persons inquiry his relatives don’t believe was taken seriously enough by police.
He was last seen on CCTV in May after leaving a house party, but police later revealed a former school friend had spoken to Cole a few days later nearby.
Speaking exclusively to Sky News, his mother Wendy Stewart, 42, revealed her son had “various arguments” in the days and hours before he disappeared.
Cole’s mum Wendy (L) and his aunt Aimee
In an emotional interview, she said: “He was only 19, he should never have been taken. I am never going to see him again. I never got a chance to give him a last cuddle and hold his hand.
“Someone has taken that away from me far too soon. Whether it be intentionally or unintentionally, I do believe there has been some involvement by a third party and the result is the death of Cole.”
The family, who organised a local vigil in Cole’s memory last weekend, have vowed to get “justice”.
Asked what that means, Ms Stewart told Sky News: “Finding the culprit and getting justice that way. Finding the person that is responsible for the death of my child.”
Police previously said 400 residents were spoken to during door-to-door enquiries and more than 2,000 hours of CCTV footage was collected.
The 19-year-old’s death is being treated as “unexplained”, with a top police officer saying “at this time there is no evidence of any third party involvement”.
Read more from Sky News:
Council apologises amid school Union Flag row
Winter fuel payment in Scotland ‘will not be less than UK benefit’
A vigil was held in Banknock for Cole Cooper. Pic: PA
Cole’s aunt Aimee Tennie, 32, revealed the family’s anger over the police handling of the case as they attempt to find out what happened.
She said: “We are aware of small details surrounding the weekend leading up to it with arguments. He had a few arguments over that weekend. We want the details re-examined thoroughly.”
Sky News put all of the family’s concerns and allegations to Police Scotland.
The force initially swerved our questions and responded saying: “Enquiries remain ongoing.”
In an update later on Wednesday morning, Detective Chief Inspector Bob Williamson said: “We are carrying out significant enquiries into Cole’s death, however, at this time there is no evidence of any third party involvement.
“It is vital that we establish the full circumstances leading up to Cole’s death so that we can provide some answers to his family.
“The thoughts of everyone involved in this investigation are very much with his family and friends and officers will continue to offer them support and keep them informed as our enquiries progress.”
Ms Stewart claimed the probe has been handled “shockingly” with a failure to take her son’s disappearance seriously.
The 42-year-old said: “I have had to scream and shout from rooftops to be heard by the police. I don’t think they have handled it well.
“The police really need to take accountability and listen to families, they are reporting a missing child and understand the family knows their child best.”
Cole’s loved ones still have not been told when his body will be released to allow them to lay him to rest.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike