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More welfare reductions anticipated as Rachel Reeves readies to present the spring statement – UK politics live | Spring statement 2025

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UK Government Faces Backlash Over New Disability Benefit Cuts Amid Fiscal Controversy

The UK government is expected to announce deeper cuts to disability benefits in its upcoming spring statement, sparking outrage among Labour politicians and advocacy groups, as the Treasury aims to meet fiscal targets amidst ongoing economic challenges.

In a surprising move, the Treasury is set to unveil additional cuts to disability benefits just days after announcing a £5 billion reduction. Stephen Timms, a welfare minister, insisted last week that further cuts were a possibility, but few anticipated the deeper cuts that are now on the horizon. This announcement comes as the government grapples with the Office for Budget Responsibility’s (OBR) assessment that previous savings estimates were overly optimistic.

Deeper Cuts Than Expected

Hours before the forthcoming spring statement, reports indicate that the government is aiming for an additional £1.6 billion in cuts beyond the initial £5 billion reduction:

– The OBR has criticized the Treasury for its unrealistic savings forecasts.
– Expected cuts will freeze universal credit incapacity benefits for new claimants until 2030.
– The basic rate of universal credit is set to see a small reduction in 2029.

Political Backlash and Public Sentiment

The anticipated cuts have triggered a significant backlash from Labour backbenchers, who have expressed alarm over the government’s approach:

– Keir Starmer and Rachel Reeves are under pressure from their party as many MPs worry about the implications of these cuts.
– While some MPs are openly critical, the public response is still mounting with apprehensions about the impact on vulnerable communities.

Government’s Justification

Defence Secretary John Healey defended the government’s fiscal decisions during recent interviews:

“I think that’s a calculation that we may see confirmed from the Office of Budget Responsibility about the longer term savings that our plans to change the welfare system may bring, and that’s a must-do for any responsible government.”

Today’s focus will primarily be on the spring statement, with major events lined up throughout the day:

– **Noon:** Keir Starmer faces off against Kemi Badenoch at PMQs.
– **12:30 PM:** Rachel Reeves delivers the spring statement.
– **2:30 PM:** Richard Hughes from the OBR holds a press conference.

Economic Context: Inflation and Defence Spending

In related economic news, UK inflation has decreased to 2.8%, providing a slight respite for the government as it prepares for the spring statement. Additionally, a £2.2 billion increase in defence spending will be announced:

– The investment is aimed at advancing the technologies of the armed forces and ensuring they are equipped for modern warfare challenges.
– This funding will help refurbish military family housing and secure logistical infrastructure for military operations.

The current tumultuous economic climate serves as a backdrop to these policy shifts, raising concerns about their long-term impact on the UK’s social safety net.

Today’s developments will likely shape ongoing discussions about the balance between fiscal prudence and social responsibility.

Keywords: UK Government, Disability Benefit Cuts, Spring Statement 2025, Keir Starmer, Rachel Reeves, Treasury, OBR, Inflation, Defence Spending

Hashtags: #UKPolitics #BenefitCuts #DisabilitySupport #SpringStatement #LabourParty #SocialSecurity



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