Chancellor Rachel Reeves delivered the UK’s Spring Statement on March 26, 2025, announcing that the Office for Budget Responsibility (OBR) halved its 2025 economic growth forecast from 2% to 1%. Speaking in the House of Commons, Reeves highlighted a tougher economic backdrop, with global challenges like rising borrowing costs and rebounding energy prices contributing to the downgrade. However, she noted the OBR upgraded long-term growth estimates from 2026 onward, offering some optimism for the future. The statement came amid a £40 billion tax rise package, pushing the UK’s tax share to its highest level since World War Two, according to the OBR.
Welfare reforms were a key focus, with Reeves’ changes projected to leave 3.8 million families better off, though 3.1 million will face cuts by 2030. This sparked debate, with Shadow Chancellor Mel Stride blaming Reeves’ decisions for the growth cut, arguing it reflects poor policy choices. The OBR’s Richard Hughes pointed to a “particularly uncertain” outlook, worsened by domestic and global economic pressures. Meanwhile, Reeves defended accepting free Sabrina Carpenter concert tickets, stating she attended with family and will declare them, amid scrutiny over political perks.
Cross-checking with Reuters and The Telegraph confirms the OBR’s growth downgrade and tax rise details, aligning with the BBC’s report. Reuters noted the FTSE 100 edged up slightly as inflation cooled, suggesting markets took the news in stride. The Telegraph emphasized Reeves’ welfare cuts drawing criticism, matching the BBC’s figures on affected families. No major discrepancies emerged, though The Telegraph framed Stride’s critique more sharply, calling the growth cut a “direct result” of Reeves’ leadership.
