Spring Statement 2025: Here’s what can be expected from Rachel Reeves’ speech

Rachel Reeves is getting ready to give the Spring Statement for 2025. She'll be talking about how the economy is doing and the challenges that are still ahead. However, with stalled tax receipts and increased borrowing costs, she is expected to announce £5 billion in public spending cuts.
The details of these cuts will be outlined in the summer’s spending review. Reeves, as per media reports, will stress her commitment to fiscal discipline in spite of pressure from economists arguing against self-imposed constraints.
A Guardian report stated that the Office for Budget Responsibility (OBR) is expected to confirm that October’s projections have shifted into the red. Reportedly, this was caused by a £10 billion shortfall due to higher debt financing and increased defence spending.
To address this, international aid has already been reduced by £6 billion, the report stated and added that welfare cuts and civil service job reductions will also contribute to savings.

Economic Forecasts and Borrowing Pressures

As per the Guardian report, growth forecasts for 2025 are expected to be downgraded from two per cent to approximately one per cent. This reflects weaker-than-expected investment and consumer spending. The report also stated that the inflation is expected to rise slightly than previously predicted, however, the unemployment rate is expected to remain stable.

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The borrowing costs have also gone up, with the yield on 10-year government bonds increasing from four per cent to 4.7 per cent.
Reportedly, Reeves will attribute this to global financial trends and uncertainty surrounding potential trade tariffs from the Donald Trump administration.

Taxation and Revenue Measures

Despite speculation, Reeves is not