UK

Industry figures have called on the Government to go further in backing emerging technologies, after the Chancellor announced plans to invest more in artificial intelligence technologies across the Civil Service and defence.Rachel Reeves used her spring statement to a £3.25 billion Transformation fund, which in part will be used to drive efficiency in the public sector by encouraging the adoption of AI tools to cut costs and boost productivity.Ms Reeves also announced a £2.2 billion defence spending hike over the next year from April, including a ringfenced 10% to fund new high-tech weaponry, such as drones, autonomous systems and AI-powered capabilities.The commitments to fund more AI technology development echoes plans announced earlier this year by the Prime Minister in the AI Opportunities Action Plan, which pledged to make the UK a global AI “superpower” and boosting the economy by investing in AI infrastructure and also improving workplace productivity by adopting more AI tools.In response to the latest announcements, Feargus MacDaeid, co-founder of AI legal tech firm Definely, said the Government still needed to go further to ensure the UK was not left behind.“The future growth of the UK’s economy hinges on its capacity to innovate and leverage cutting-edge technologies,” he said.“However, this requires stability in policy frameworks and a clear strategic vision, particularly around frontier technologies such as AI.“A more clearly defined national AI strategy, with substantial funding commitments for innovation, infrastructure, and, crucially, fundamental research, is essential.“These frontier technologies are increasingly vital to our national interest, and failing to support risk-taking and cutting-edge research risks ceding leadership to other nations.“Government support is essential to catalyse private investment, encourage bold innovation, and attract global talent, which is critical to ensuring the UK remains competitive in this rapidly evolving landscape.”Andrew Warren, chief commercial officer at IT service provider Node4, said: “The country is currently navigating choppy waters, driven by geopolitical uncertainties and economic constraints, but we need to look forward, rather than backwards.“We are at a generational tipping point with the ubiquity of technology that is really interesting and exciting.“Utilising the latest AI tools, amplified by sophisticated cloud and networking technologies, businesses, the Government, and the country as a whole can drive efficiencies and become more productive, exactly what the UK needs to achieve economic growth.“The last time we had this opportunity was with the rise of the World Wide Web 30 years ago, where people realised that it could radically change the way we work.“The Government showed us today that it recognises this opportunity and identified key areas where AI can be used to make productivity improvements across the country, specifically within the public sector.“Driving efficiencies and improving productivity is how we will achieve economic growth.“But it is not enough to only recognise the moment with talk and promises.“The Government needs to be leading the way.“By embracing these technologies and demonstrating its tangible benefits, it can encourage businesses to follow suit, and improve productivity across the country.“This Government talks a lot about regulation around curation, but instead it needs to focus on facilitating and nurturing the opportunity presented by AI, not regulating and controlling it so that its power is reduced.” More

Watch as Rachel Reeves delivers her spring statement on the state of the UK economy on Wednesday, 26 March.The chancellor unveiled a package to repair finances that included cuts to welfare.Ms Reeves announced that the health element of universal credit will be cut in half for new claimants and then frozen. Elsewhere, the universal credit standard allowance will increase from £92 per week in 2025-26, to £106 per week by 2029-30. It had previously been expected to rise to £107 per week by that year.But this will come alongside a £1bn investment in helping people back into work, while the DWP will spend £400m ensuring the changes are delivered effectively.Ms Reeves also promised an extra £2.2bn will be spent on the UK’s defence over the next year.It comes after the UK’s budget watchdog warned last week’s reforms would save over £1bn less than forecast.An assessment from the Office for Budget Responsibility (OBR) was that changes to disability and incapacity benefits will save £3.4bn in 2029/30 rather than the more than £5bn claimed by ministers.Alongside the statement, the government will release an impact assessment detailing how many people will be hit by the previously announced plans to cut the welfare bill. More

Rachel Reeves’ benefits cuts will push an estimated quarter of a million people, including 50,000 children, into poverty by the end of this decade, according to the government’s own impact assessment.Ministers finally published the document alongside the spring statement, a week after they first outlined moves to slash £5 billion from the welfare bill. It also reveals that 3.2 million families will lose out, on average by £1,720 a year. The impact assessment warned the cuts, that will see more than 1 million disabled people lose their benefits, will result in “an additional 250,000 people (including 50,000 children) in relative poverty after housing costs in 2029/30 as a result of modelled changes to social security”. In response, suspended Labour MP Zarah Sultana, who now sits as an independent, challenged the chancellor, who she said she was earning more than £150,000 and recently took “freebie tickets to see Sabrina Carpenter”, whether the cuts were the change people had voted for last summer.The chancellor’s benefit cuts will plunge 250,000 people into poverty (Dominic Lipinski/PA) More

Rachel Reeves vows to crack down on tax avoidance in spring statementThe budget watchdog has slashed its forecast for economic growth by half as Rachel Reeves unveiled a 14bn package to repair the UK economy that includes cuts to welfare.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.Shadow chancellor Mel Stride accused Ms Reeves of having “tanked the economy” as he said she “chose to be reckless” with fiscal headroom.Watch: Zarah Sultana challenges Rachel Reeves over child benefit cap and freebiesZarah Sultana challenges Rachel Reeves over child benefit cap and freebiesAlexander Butler26 March 2025 14:43Reeves’ benefit cuts to plunge 250,000 people into poverty, government admitsRachel Reeves’ benefits cuts will push an estimated quarter of a million people, including 50,000 children, into poverty by the end of this decade, according to the government’s own impact assessment.Ministers finally published the document alongside the spring statement, a week after they first outlined moves to slash £5 billion from the welfare bill.The impact assessment warned the cuts, that will see more than 1 million disabled people lose their benefits, will result in “an additional 250,000 people (including 50,000 children) in relative poverty after housing costs in 2029/30 as a result of modelled changes to social security”.Alexander Butler26 March 2025 14:36Reeves has guaranteed ‘another six months of damaging speculation and uncertainty over tax policy’, IFS warnsThe respected Institute for Fiscal Studies (IFS) has delivered a damning verdict on the chancellor’s spring statement, saying the has guaranteed “another six months of damaging speculation and uncertainty over tax policy”.“That didn’t go well between last July’s election and October’s Budget. I fear a longer rerun this year,” director Paul Johnson said.He slammed Rachel Reeves for deciding to restore her £9.9 billion of fiscal headroom simply back to the same level it was before a growth downgrade from the Office for Budget Responsibility (OBR).Any further OBR downgrade will reopen speculation about which taxes will have to rise to help Ms Reeves meet her self-imposed fiscal rules again this autumn.Mr Johnson added: “There is a cost, both economic and political, to that uncertainty. The government will suffer the political cost. We will suffer the economic cost.”Archie Mitchell26 March 2025 14:35Labour MPs urge Rachel Reeves to rethink welfare cutsRachel Reeves has faced pleas from Labour MPs to reverse cuts to health and disability benefits, amid warnings they will lead to increased poverty.The Chancellor claimed the Government “inherited a broken” welfare system as “more than 1,000 people” qualify for personal independence payments every day – and one in eight young people are not in employment, education or training.Ms Reeves used the spring statement to confirm further pressure on the welfare budget, which follows cuts to the disability and incapacity bill set out earlier this month.Labour MP Debbie Abrahams, who chairs the Work and Pensions Committee, told the Commons: “I recognise the difficulties that (Ms Reeves) is facing in terms of fiscal challenges and so on that she inherited and I also support the reforms (Work and Pensions Secretary Liz Kendall) has set out.“But all the evidence is pointing to the fact that the cuts to health and disability benefits will lead to increased poverty, including severe poverty, and worsened health conditions as well.“How will making people sicker and poorer help in terms of driving our economy up and people into jobs?”Alexander Butler26 March 2025 14:29Reeves has ‘balanced books on backs of vulnerable’, Lib Dems saysThe Liberal Democrats have accused Rachel Reeves of “balancing the books on the backs of the vulnerable,” as the party’s work and pensions spokesman accused Labour of rushing through cuts.Torbay MP Steve Darling said: “Today and last week the Chancellor rushed through severe cuts to the benefits system that will hit some of the most vulnerable in our society. “Whilst we should have considered benefit reform, this is ill-conceived.“Can the Chancellor explain to the chamber why she is choosing to balance the books of the nation on the backs of some of the most vulnerable in our society?”Alexander Butler26 March 2025 14:26Extra benefit cuts are ‘devastating’, says MindMental health charity Mind has said the extra benefit cuts announced by the chancellor are “devastating and will push more people into crisis”.Chief executive Dr Sarah Hughes said: “People are telling us that they are so worried about the situation they’d be left with no choice but to end their own life.“It’s a political choice to try fixing the public finances by cutting the incomes of disabled people, including people with mental health problems. “Benefits are a lifeline for so many people. Cuts will push people into poverty. This is policy making by numbers with little recognition of the impact on real people’s lives.“Our Federation of local Minds across England and Wales sees the consequences of these decisions every day. We are always here to support people, but we can’t do it alone. We urgently call on the Government to rethink these plans. We can, and must, do better.”Alexander Butler26 March 2025 14:12250k people pushed into povery by welfare reforms, government saysAn 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 Government’s own impact assessment has said.The document, published on Wednesday after Chancellor Rachel Reeves delivered her spring statement in parliament, said: “The potential impact of these reforms on poverty projections has been estimated using a static microsimulation model.”Using this model, we estimate there will be an additional 250,000 people (including 50,000 children) in relative poverty after housing costs in 2029/30 as a result of modelled changes to social security, compared to the baseline projections.”The document stated the estimate does not include the impact of the £1 billion annual funding, by 2029/30, for measures supporting people into work “which we expect to mitigate the poverty impact”.It added that its analysis does not take into account new protections for those with severe lifelong conditions that the Government intends to bring forward.Alexander Butler26 March 2025 14:11Reeves tinkering does not match growth rhetoric, says thinktankGrowth Commission Chairman Shanker Singham said: “While we applaud the Government’s pro-growth rhetoric and commitment to ‘tearing down regulatory barriers’, ministers must be judged by their actions rather than their words. “On present form, after two successive quarters with contractions in GDP per capita growth – the yardstick against which to judge whether living standards are improving for British families – the rhetoric is failing to live up to reality. “What Rachel Reeves announced today amounts to tinkering at the edges when a fundamental reshaping of policy in numerous areas is required.“Rachel Reeves is right to identify that we live in a ‘changing world’ and the imposition of tariffs by the new US administration would certainly have a wide-ranging impact. “But that provides an even more compelling reason to commit to a comprehensive trade deal with the US and undertake widespread domestic regulatory reform as part of an effort to restore the UK’s historic economic strength.”David Maddox26 March 2025 14:08Analysis: UK scrambles to learn lessons of Ukraine’s defence against RussiaWorld affairs editor Sam Kiley writes:Ukraine’s defence against Russia’s invasion has seen the biggest change in warfare since the invention of the aeroplane. Kyiv now rules the Black Sea without a navy to speak of because of its innovations in the use of drones, on, above and below the surface of the sea.Ukraine produces almost all the new technology is needs for fighting this new kind of warfare, closely followed by Russia. The two nations are now years ahead of even countries like the US and Israel in the development and the real-world use of drones.Whether in Russia or Ukraine scientists are now rushing to develop autonomous unmanned vehicles, aircraft and boats to allow these weapons to bypass attempts to block their command and control systems which, currently, rely on radio waves or fibre optic guidance systems.Ukraine has a Navy, and Airforce, and an Army as well as a newly minted Unmanned System Force which only works using these new weapons. The UK, and all other Nato countries, are scrambling to learn the lessons of Ukraine’s defence against Russia and is likely to heavily invest in Kyiv’s efforts – because that’s where the innovations are ahead of the rest of the world.The UK, and all other Nato countries, are scrambling to learn the lessons of Ukraine’s defence against Russia and is likely to heavily invest in Kyiv’s efforts More

Watch live as Rachel Reeves delivers her spring statement on the state of the UK economy on Wednesday, 26 March.The chancellor unveiled a 14bn package to repair finances that included cuts to welfare.Ms Reeves announced that the health element of universal credit will be cut in half for new claimants and then frozen. Elsewhere, the universal credit standard allowance will increase from £92 per week in 2025-26, to £106 per week by 2029-30. It had previously been expected to rise to £107 per week by that year.But this will come alongside a £1bn investment in helping people back into work, while the DWP will spend £400m ensuring the changes are delivered effectively.Ms Reeves also promised an extra £2.2bn will be spent on the UK’s defence over the next year.It comes after the UK’s budget watchdog warned last week’s reforms would save over £1bn less than forecast.An assessment from the Office for Budget Responsibility (OBR) was that changes to disability and incapacity benefits will save £3.4bn in 2029/30 rather than the more than £5bn claimed by ministers.Alongside the statement, the government will release an impact assessment detailing how many people will be hit by the previously announced plans to cut the welfare bill. More

Rachel Reeves has outlined a fresh set of cuts to government spending without raising taxes, blaming a dramatic slowdown in growth.The chancellor faced a major setback in the hours before delivering her spring statement when the government’s official spending watchdog rejected its forecasts for how much its welfare cuts would save. That prompted the Office for Budget Responsibility (OBR) to slash its economic growth forecast for this year from 2 per cent to 1 per cent. Having been forced to go further than expected to fall back within her self-imposed borrowing rules, Ms Reeves set out fresh measures to cut the government welfare bill.She promised changes were consistent with plans to cut the benefit bill announced last week, despite admitting the government was forced to make “final adjustments to the overall package”.The Independent looks at the key takeaways from what was meant to be a minor financial update, but turned into a major spring statement. Rachel Reeves was forced into major cuts due to the flatlining economy More

A furious row has broken out over the publishing of a report that found ex-Reform MP Rupert Lowe harassed two women who worked in his office. The KC put in charge of investigating Mr Lowe has accused Nigel Farage and Reform of “reneging” over the agreement about when to publish her report into the Great Yarmouth MP.Jacqueline Perry, who is also Donald Trump’s lawyer, sent an email to Mr Lowe’s lawyer apologising for the way in which her report had been published early on Tuesday.She said: “I made it quite clear to the party that I had indicated a deadline to you of Wednesday the 26th and the report had been released entirely without my input in this at all. In fact, I was informed of this and surprised and disconcerted that the gun had been jumped.”Nigel Farage More

Welcome to an exclusive Ask Me Anything session with me, Andrew Grice, political commentator for The Independent.Keep scrolling for more. If you want to jump straight to the Q&A click here.Chancellor Rachel Reeves will deliver her first spring statement on Wednesday, setting out her economic plans for the UK. With spending cuts, potential tax changes, and shifts in government priorities on the table, this announcement will have a significant impact on households and businesses alike.Spending cuts are a major concern, with some Whitehall departments facing reductions of up to seven percent over four years. Recent welfare reforms will slash £5 billion from benefits, the steepest cuts since 2019, raising concerns over public services.Reeves may also extend the freeze on income tax thresholds beyond 2028. While not a direct tax hike, this would push more people into higher tax brackets due to “fiscal drag,” increasing their tax burden.Labour’s plan to boost defence spending to 2.5 percent of GDP by 2027 is another contentious issue. The expected reallocation of international aid funds has drawn criticism from charities, while the move aligns with US pressure for stronger European defence commitments.So what will these changes mean for your finances? Will you end up paying more tax? How will spending cuts affect public services? And when will these policies come into force?Beyond the immediate economic impact, the political ramifications of this spring statement are also worth exploring. Does this signal a long-term shift in Labour’s economic approach under Reeves and Starmer? Is Labour positioning itself as the party of fiscal responsibility, even at the cost of traditional welfare commitments?If you have a question on the spring statement, submit it now, or when I join you live at 3pm on Thursday 27 March for the “Ask Me Anything” event.Register to submit your question in the comments box under this article. If you’re not already a member, click “sign up” in the comments section to leave your question. For a full guide on how to comment click here.Don’t worry if you can’t see your question – they may be hidden until I join the conversation to answer them. Then join me live on this page at 3pm as I tackle as many questions as I can. More