US EditionDoom, gloom and not much headroom: Spring Statement
- Chancellor Rachel Reeves unveiled her Spring Statement, which included cuts to welfare and a squeeze on public spending, prompting immediate scrutiny and criticism.
- The Spring Statement was influenced by updated economic forecasts from the Office for Budget Responsibility , which indicated that worse-than-expected growth had eliminated the Chancellor's 'headroom,' defined as the difference between borrowing and the maximum allowed under fiscal rules.
- To address the situation, Reeves implemented £14 billion in cuts to borrowing plans, primarily through reduced welfare spending and slower growth in public service funding, confirming that universal credit health benefits for new claimants will be halved in 2026 and frozen until 2030.
- Following the spring statement, an Ipsos poll revealed that only one in five people believed Ms. Reeves was doing a good job, half felt she was performing badly, and her approval rating dropped to-32, nearing Kwasi Kwarteng's post-mini-budget levels, while a Techne UK survey indicated a drop in support for Labour from 27% to 25%.
- The Department for Work and Pensions warned that these benefit cuts could push an additional 250,000 people, including 50,000 children, into poverty, raising concerns from organizations like the Child Poverty Action Group and prompting warnings of a potential shock tax raid on pensioners and the wealthy if the economic forecast doesn't improve.
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Reeves’s cuts almost as unpopular as Truss mini-Budget, poll shows
The Spring Statement delivered this week by Rachel Reeves was almost as unpopular as Liz Truss’s disastrous “mini-Budget”, according to a poll.Only one-fifth of the public feel positive about the Chancellor’s statement, which saw her set out cuts to welfare and a squeeze on public spending to avoid breaking her own borrowing rules.The 49 per cent of people who viewed the Spring Statement negatively, in a BMG Research poll for The i Paper, fell j…
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Leaning Left3Leaning Right1Center2Last UpdatedBias Distribution50% Left
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50% Left
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C 33%
R 17%
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