Reeves plans spending cuts, avoids tax hikes in Spring Statement

Chancellor Rachel Reeves is set to unveil significant spending cuts in her Spring Statement next week, opting for reductions rather than tax increases to address a fiscal shortfall estimated between £15 billion and £20 billion. This decision comes amid a backdrop of reduced growth forecasts from the Office for Budget Responsibility and rising public borrowing, prompting concerns about the impact on public services and welfare payments. Ministers have already implemented cuts, including a £5 billion reduction affecting disabled individuals. While some had speculated on potential tax hikes, it appears Reeves will defer such measures until the Autumn Budget, with departmental spending growth likely slashed from an anticipated 1.3% to 1%. Critics argue that these cuts disproportionately affect Britain’s poorest families and represent a return to austerity measures. The Chancellor's choices will be closely scrutinized, especially following earlier commitments not to extend tax freezes.