Please find attached our summary of the Spring Statement delivered by the Chancellor, Rachel Reeves, on Wednesday 26 March.
Having set herself ‘iron-clad’ fiscal rules and the goal of holding a single fiscal event each year, the Chancellor was in a difficult position only five months after her first Budget. Growth had been slower and interest rates and inflation higher than the Office for Budget Responsibility (OBR) projected last October, meaning that her main fiscal target was liable to be missed. Despite much press speculation, fresh tax increases were ruled out until the next full Budget, so her focus was on controversial spending cuts.
A large slice of the pain was borne by the welfare budget, with well-trailed reductions to Personal Independence Payments (PIPs) and the health-related element of Universal Credit. However, there were a variety of other measures, including administrative and technical tax changes, as well as increased fees for passports and other Home Office services.
