Watch live as Rachel Reeves holds a press conference this afternoon (26 March) following backlash to her spring statement.
Delivering her spring statement to the House of Commons on Wednesday, the chancellor blamed “increased global uncertainty” as the Office for Budget Responsibility halved its forecast for growth in gross domestic product in 2025 from 2 per cent to just 1 per cent.
Ms Reeves also confirmed a further squeeze on the welfare budget, building on cuts to the disability and incapacity bill set out earlier this month, with the package now expected to save £4.8 billion rather than the more than £5 billion in 2029/30 hoped for by ministers.
In a damning revelation, the government’s own impact assessment said after the announcement that an estimated quarter of a million people, including 50,000 children, would be pushed into relative poverty by the end of the decade as a result of welfare reforms.
The assessment also estimated 3.2m families would lose on average £1,720 per year compared to inflation in 2029 and 2030.
