UK Chancellor Announces Employer Tax Increase, Welfare Cuts

Chancellor Rachel Reeves announced in the Spring Statement that employers' national insurance contributions will increase from 13.8% to 15% starting in April, while committing to no tax increases for employees. The Office for Budget Responsibility has revised its growth estimates for the UK, predicting a 1% growth in 2025, while also forecasting inflation to rise to 3.2% in 2025 before declining. Additionally, Reeves unveiled plans for increased investment in HM Revenue & Customs to combat tax evasion, aiming to raise an additional £1 billion for public funds. The government also confirmed cuts to welfare designed to save £5 billion annually by 2030, including stricter tests for personal independence payments. These measures reflect the government's approach to navigate the economic challenges inherited from the previous administration, emphasizing a commitment to working people. The statement underscores a balance between fiscal responsibility and support for the workforce as the country faces economic pressures.