UK Politics

Rachel Reeves will soon give an update on her plans for the UK economy as she prepares to make the first Spring Statement of the new Labour government. The chancellor will also speak to an economic forecast as part of the event, with many predicting further spending cuts to come as the Treasury seeks to tackle ailing growth.Ms Reeves will be delivering the statement on Wednesday 26 March. She had previously committed to one major economic event a year – the Budget – which usually comes in the Autumn. This is to “give families and businesses stability and certainty on tax and spending changes,” she says.This means there a no major policy announcements expected as part of the statement, although some have predicted that reduced spending targets and some key tax changes will be revealed.Chancellor Rachel Reeves will deliver her Spring Statement on 26 March (Jonathan Brady/PA) More

‘What was the point?’ Starmer grilled on real-life impacts of disability benefits cutsIn another setback for Rachel Reeves, UK Government borrowing soared above forecasts last month as public sector spending rose, putting pressure ahead of the spring statement next week. The Office for National Statistics (ONS) said public sector net borrowing was £10.7 billion in February. This was £100 million more than the same month last year and the fourth-highest February on record.The UK’s official economic growth forecast for the year is also reportedly set to halve in a blow for a Labour government that has pledged to prioritise growth.The expected growth rate for the 2025 financial year, from April to March 2026, will be downgraded by the Office for Budget Responsibility (OBR) next week, The Telegraph reported, reducing from 2 per cent to around 1 per cent.In her spring statement next week, Rachel Reeves is expected to try blaming the drop on worsening global economics amid Donald Trump’s tariffs.The chancellor is also set to announce the biggest cuts since the George Osborne era on Wednesday, forcing Labour to reject claims the government is returning to a policy of austerity, days after the party slashed the welfare bill by around £5 billion.Is the UK facing a new age of austerity?There are ever more signs that the chancellor, Rachel Reeves, will use her spring statement next week to introduce further public spending cuts, augmenting fears that the country could be on the verge of a new age of austerity. How has the growth agenda morphed so soon into something akin to its opposite?Why might new cuts be needed?The growth that was the theme of Reeve’s first Budget last autumn has failed to materialise, and economic forecasts have become ever more pessimistic. The Bank of England last month reduced its growth forecast for this financial year by half – from 1.5 per cent to 0.75 per cent, and predicted higher inflation. Worse, according to the National Institute of Economic and Social Research think tank, the combination of poor growth and rising interest rates has reduced the chancellor’s spending buffer – or fiscal headroom – from an estimated £10bn to zero. And while the effect of US trade tariffs could be less damaging to the UK than to EU and other countries, there could still be a cost.Read the full analysis here: Is the UK facing a new age of austerity? Another round of expected cutbacks in the spring statement has led some to ask if we’re heading towards more austerity? The return of the A-word to conversations would be very bad for the chancellor, says Mary DejevskyHolly Evans21 March 2025 14:50The planning system is broken. Here’s how we should fix itHolly Evans21 March 2025 14:30’Nothing off the table’ in placing UK troops on the ground for Kyiv Downing Street on Friday said officials from allied countries will meet again at the same site next week to firm up a strategy to protect Kyiv as plans enter an “operational phase”.Asked whether the focus of discussions had shifted away from the prospect of ground troops for Ukraine, a Number 10 spokesman said: “No, nothing is off the table on any of these fronts, so I wouldn’t start ruling anything out.“But clearly thousands of troops will be required to support any deployment, whether that is at sea, on land or in the air.”Prime Minister Sir Keir Starmer and Defence Secretary John Healey (Oli Scarff/PA) More

The UK’s official economic growth forecast for this year will be cut in half next week in a blow to Sir Keir Starmer and Rachel Reeves, it has emerged. As the chancellor prepares to unveil a swathe of spending cuts at next week’s mini-Budget, the government’s spending watchdog is set to lower the expected growth rate for 2025 from 2 per cent to about 1 per cent. The Office for Budget Responsibility’s (OBR) downgrade is a major blow for the government, with Sir Keir having repeatedly said economic growth is his top priority. The news is a major blow to Sir Keir Starmer and Rachel Reeves More

Suspended Reform UK MP Rupert Lowe said Nigel Farage “must never become prime minister” after the party leader allegedly called his behaviour “disgusting” and “contemptible” in leaked private messages.Mr Farage accused Mr Lowe of “damaging the party just before elections” in a WhatsApp conversation with a member of the Great Yarmouth MP’s staff, the BBC reported.It comes as new polling suggests the fallout from the Great Yarmouth MP’s ousting is now hurting Reform. The weekly Techne UK tracker poll revealing the Tories level with Reform on 23 per cent each for the first time in two months.The messages were sent after Mr Lowe, who was suspended from the party amid allegations he made threats of violence to its chairman Zia Yusuf, had criticised Mr Farage in a Daily Mail interview, according to the broadcaster. In his latest attack on Reform, Mr Lowe said: “These messages unquestionably prove that the Reform leadership has zero integrity.”He added: “I will not work with the rotten and deceitful Reform leadership … Nigel Farage must never be prime minister.”The staff member, who is not currently a party member, had asked Mr Farage why Reform had not allowed a lawyer to complete an investigation into allegations about the MP’s conduct before removing the whip.Nigel Farager (Lucy North/PA) More

The mayors of Liverpool and Manchester have agreed a deal with an American space firm to put north-west England in a “central role in the global space economy”.Liverpool City Mayor Steve Rotheram and Greater Manchester Mayor Andy Burnham signed the agreement with Axiom Space on Thursday in a move they said could “unlock billions” of pounds for the region.Houston-based Axiom, which is developing a commercial space station, said the partnership would focus on space-based communications, disaster management, cybersecurity, microgravity research in medicines and in-space manufacturing.British astronaut and Axiom adviser Tim Peake, one of only two astronauts the UK has sent to space, was involved in initial discussions with Mr Rotheram to secure the deal.Mr Rotheram said: “For centuries, our region has been at the forefront of innovation – from the world’s first passenger railway to breakthroughs in modern medicine.“Now, we’re looking to space as the next great frontier for our expertise in advanced manufacturing, materials science, and biotech.”The plan will utilise the Liverpool City Region Freeport and the Greater Manchester Investment Zone, where different economic regulations apply compared with most of the UK.In January, Mr Burnham unveiled a decade-long plan to increase Greater Manchester’s contribution to the UK economy by £13 billion a year.Mr Burnham said of Thursday’s agreement: “Space is one of the UK’s fastest-growing sectors, and Greater Manchester is perfectly placed to lead this innovative work, with our strengths in advanced materials and manufacturing, life sciences, AI and data.“The expertise in our universities, digital sector, and manufacturing and engineering firms mean that we can seize this opportunity to create highly skilled, well-paid jobs across our city region.” More

‘What was the point?’ Starmer grilled on real-life impacts of disability benefits cutsProtesters have disrupted proceedings in the House of Lords demanding the abolition of the unelected chamber and carrying leaflets reading “Aristocrats and oligarchs: Out.”A group of around half a dozen people in the public gallery threw leaflets, shouted and sang during the demonstration at noon on Thursday.The protest came amid moves at Westminster to reform the Lords by ousting hereditary peers. Meanwhile, UK interest rates have been held at 4.5 per cent by the Bank of England (BoE) with another cut to borrowing costs unlikely, amid mounting global uncertainty. While the interest rate is still expected to fall further over the remainder of the year, only two further cuts are now expected across 2025 amid an ongoing battle with inflation, rising costs for businesses and an uncertain wider economic outlook, partly due to Trump’s threat of tariffs. It comes as reports suggest Rachel Reeves is set to announce the biggest spending cuts since austerity in her spring statement next week. Having reportedly ruled out tax rises, Ms Reeves is set to tell MPs her plans next Wednesday, with experts warning fresh cuts would hit vital public services, a week after her party slashed the welfare bill by around £5 billion.Labour’s welfare ‘reforms’ are nothing of the sort – and they don’t go anywhere near far enoughWhen I resigned from David Cameron’s government as the secretary of state for work and pensions in 2016, welfare stood at £61.6bn. By the end of this parliament, it is projected to be £108.7bn. Sickness benefit alone, which was £19bn back then, is set to rise to £32bn. So it is with disability benefit, which is set to rise from £11bn to some £31bn. To govern is to choose. Against the backdrop of an increasingly unsafe world, the need to invest significantly more in defence, and a flatlining economy, further reform of welfare is a necessity.The pandemic response has hit the welfare budget hard. The rise in sickness benefit claims poses a challenge to the government, particularly because some 60 per cent of claims since Covid are from mental health issues. The majority of these are for depression and anxiety. The health department has declared that the best treatment for depression and anxiety is going back to work. That is why, as sickness benefit moves into universal credit, the possibility of large-scale reform opens up for the government.Read the full opinion article here from Iain Duncan-Smith: Holly Evans20 March 2025 14:49Welfare system overhaul does not amount to cuts, insists Scottish Labour leaderAnas Sarwar has denied that Labour’s decision to slash £5 billion a year from the welfare budget amounts to cuts.The Scottish Labour leader rejected claims – including from within his own front bench – that the benefits system overhaul amounts to austerity because overall spending on welfare is still set to increase.He said it is right that the UK Government focuses on encouraging more people into work and he criticised the Scottish Government for an “inefficient” benefits system north of the border which he said had wasted tens of millions of pounds.UK Work and Pensions Secretary Liz Kendall announced on Tuesday £5 billion worth of proposed welfare changes, largely stemming from a big reduction in support for those off work due to disability and ill health.Around a million people are expected to lose their disability benefits as part of the welfare overhaul, experts believe.Speaking to reporters at Holyrood, Mr Sarwar denied the move amounts to cuts, and he said it will not come into effect this year.Told the UK Government is cutting the welfare budget by £5 billion, he said: “No, you’re wrong actually because currently welfare spending across the UK is £50 billion, and the new proposals will mean it’s projected to be £64 billion.”Holly Evans20 March 2025 14:44Starmer says EU’s increase in defence spending gives opportunity for joint work Sir Keir Starmer has said there was scope for greater co-operation with the European Union after Brussels’ plans to increase defence spending would block the money being used to buy from UK arms firms.The Prime Minister told Sky News: “I’m very pleased that the EU is signalling their intent to spend so much on defence.“I’ve been making the argument, as others have, that all of us in Europe need to step up, not just in relation to Ukraine, but more generally, in our own collective self-defence.“That does mean more spend, more capability, more co-ordination, and I want to have those discussions with our European allies. We’re continuing those discussions with them, because I do think the scope for more joint work is here.”Sir Keir Starmer with defence secretary John Healey More