Spending cuts and tax hikes tis spring.

[Beso]

Something to look forward to..



sky news logo
Home

›

Politics

Billions of pounds in spending cuts - including welfare - expected in spring statement
The chancellor's self-imposed fiscal rules mean she cannot borrow for day-to-day spending - leaving cuts as one of her only options.
By Alix Culbertson, Political reporter alixculbertson

Wednesday 5 March 2025 11:05, UK

Rachel Reeves speaks to the media after a visit to Maidstone Hospital.
Pic: PA
Image:
Pic: PA
Several billion pounds in spending cuts - including from the welfare budget - are expected in the spring statement later this month.

The Treasury will put forward the proposed cuts to the Office of Budget Responsibility (OBR) on Wednesday, ahead of it providing a financial forecast on 26 March, alongside Chancellor Rachel Reeves announcing her spring statement.

Sky's deputy political editor Sam Coates revealed on the Politics at Jack and Sam's podcast that welfare cuts are set to be part of the spring statement package to help the chancellor come within her borrowing limit.

Politics latest: Ministers to make 'blizzard of announcements'

Coates said there would be a "four-point plan" involving planning reform, Whitehall cuts, regulation cuts and welfare cuts.


👉Listen to Politics At Jack And Sam's on your podcast app👈

The Treasury believes Ms Reeves must maintain a £10bn headroom after months of economic downturn and geopolitical events since last October's budget.

More on Rachel Reeves
Sir Keir Starmer at a welcome reception at the British ambassador's residence in Washington DC. Pic: PA
Starmer refuses to say if further tax rises will be imposed at spring statement

Lord Mervyn Allister King on Sophy Ridge's Politics Hub
Former Bank of England governor Lord King says income taxes must rise

RACHEL REEVES
More pressure to raise taxes or cut spending - despite greatest budget surplus since records began

Related Topics:
Rachel Reeves
Spring Statement
Her self-imposed fiscal rules mean she cannot borrow for day-to-day spending, leaving spending cuts as one of her only options.


'I am not satisfied with the level of growth'
Sir Keir Starmer said last week the government was in the "early stages" of looking at whether tax rises or spending cuts were needed to meet Labour's self-imposed fiscal rules.

Advertisement

The prime minister refused to say whether further tax rises or spending cuts would be imposed.

The OBR 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.

However, the poor economic climate since October is forcing her hand, with inflation hitting a 10-month high of 3% in January, a sharp rise in government bond yields and growth has not been as high as expected.

This is a limited version of the story so unfortunately this content is not available.
Open the full version

Get Sky News on WhatsApp
Get Sky News on WhatsApp
Follow our channel and never miss an update.

Tap here to follow
Read more:
Everything you need to know about Starmer's Ukraine peace plan
JD Vance denies insulting British troops over 'random country' jibe

Donald Trump imposed tariffs on Canada, Mexico and China - the US's biggest trading partners - this week, prompting retaliation as stock markets fell sharply around the world.

The UK has not been hit by tariffs yet, but the chancellor said the British economy will still be affected by the US president's trade war even if the UK strikes a deal with the White House.

"It's absolutely the case that even if tariffs aren't applied to the UK we will be affected by slowing global trade, by slower GDP growth and by higher inflation than otherwise would be the case," she told hundreds of top British manufacturers at a key industry conference on Tuesday.


Terms & Conditions
Privacy & Cookies Notice
Accessibility Information
Contact Us
Privacy Settings
Sky logo
© 2025 Sky UK

[Cherie]

It appears they want everyone back to work.... we will see how that pans out

[Vanessa]

It appears they want everyone back to work.... we will see how that pans out

There are an awful lot of people out of work who could be working. But are happy to relax and take the cheque..
I don't expect things to change.

[Livia]

There are an awful lot of people out of work who could be working. But are happy to relax and take the cheque..
I don't expect things to change.

There are also a lot of people not working because they can't. They're going to be tarred with the same brush. Labour have robbed the pensioners, they're robbing the farmers, tax is really high, people who make sacrifices to send their kids to private school now pay VAT on the fees... illegals and non-English speakers are still getting a joyfully free ride though.

[Vanessa]

There are also a lot of people not working because they can't. They're going to be tarred with the same brush. Labour have robbed the pensioners, they're robbing the farmers, tax is really high, people who make sacrifices to send their kids to private school now pay VAT on the fees... illegals and non-English speakers are still getting a joyfully free ride though.
Illegals are not allowed to work. Not even when they're accepted. I think that's wrong. They should work.

[bots]

Labour will be kicked out at the first opportunity, it's what replaces them that really worries me

[Cherie]

Looks like they are coming for people with mental health and anxiety as a reason not to work, I don't disagree that some people abuse this but alot of people don't and they will suffer as per

[Vanessa]

Looks like they are coming for people with mental health and anxiety as a reason not to work, I don't disagree that some people abuse this but alot of people don't and they will suffer as per

Yes a lot of those people can work, but won't.
How is anxiety a reason not to work?
Of course if you have genuine mental health problems then that's fine by me.

[Cherie]

Yes a lot of those people can work, but won't.
How is anxiety a reason not to work?
Of course if you have genuine mental health problems then that's fine by me.


The problem is anxiety has been paired with depression when often its just normal to feel anxious about doing something new or meeting new people, its not a condition that needs medicating

[arista]

All because the £9 Billion,
she thought she could borrow
has gone.


After Covid-19
Lockdowns.
Many are still staying at home.

Also many are waiting,
for an NHS appointment.


Benefits a Lifestyle Choice
is spoken about today on TV and Radio

[arista]

Illegals are not allowed to work. Not even when they're accepted. I think that's wrong. They should work.

Worse than that Vanessa
Each Illegal Migrant in the UK
is burning our money.


Free Hotel
Free Mobile Phone
Free Monthly Cash in a New Bank Account
Free Dentist

[Cherie]

Worse than that Vanessa
Each Illegal Migrant in the UK
is burning our money.


Free Hotel
Free Mobile Phone
Free Monthly Cash in a New Bank Account
Free Dentist

Since we moved to Norfolk we have been unable to register with an NHS dentist so rather than pay the extortionate private fees we have our dental checks carried out in Spain, the fee is not too much more than you would pay via the NHS and their dental hygiene is top notch, 45 minutes for 50 euros not just a quick run over as they do on the NHS

[arista]

Since we moved to Norfolk we have been unable to register with an NHS dentist so rather than pay the extortionate private fees we have our dental checks carried out in Spain, the fee is not too much more than you would pay via the NHS and their dental hygiene is top notch, 45 minutes for 50 euros not just a quick run over as they do on the NHS


Yes,
it is shocking,
The Illegal Migrant gets a Free Dentist.


Also,
I have heard of others who fly to Spain
as it is the lower price.



PM Starmer
needs to address this.

[Vanessa]

Yes,
it is shocking,
The Illegal Migrant gets a Free Dentist.


Also,
I have heard of others who fly to Spain
as it is the lower price.



PM Starmer
needs to address this.

They get everything free and thats infuriating for us who work for everything we get :fist: