UK Faces Economic Struggles Under Reeves Amid Inflation Drop

UK Finance Minister Rachel Reeves delivered her Spring Statement amid a challenging economic backdrop, revealing a halved growth forecast for 2025 and rising public borrowing. Recent data showed UK inflation dropping from 3.0% to 2.8%, providing Reeves with some relief; however, core services inflation remains stubbornly high at 5%. Critics argue that Reeves has failed to acknowledge the negative impact of her tax hikes and spending cuts on the economy, while she has instead pointed to external factors like U.S. trade policies and global inflation pressures. The government is under pressure as it navigates potential trade conflicts and the implications of rising National Insurance Contributions set to take effect soon. Despite the mixed signals in inflation data, experts remain cautious about the UK's economic outlook, with expectations of further challenges ahead. The overarching sentiment is one of uncertainty, with debates about the impact of Reeves' policies on growth and public finances continuing to dominate discussions.