Economic growth in doubt – Rachel Reeves’ Spring Statement, several newspapers highlight the OBR’s warning that the Chancellor’s plans for economic growth could be wiped out by the global trade war as Donald Trump continues to issue further tariff threats.

The Office for Budget Responsibility (OBR) has halved the 2025 economic growth forecast to 1%, down from 2%. Despite these austerity measures, the tax burden is projected to reach a record 37.7% of the GDP by 2027-28.

Recent welfare cuts are projected to push tens of thousands of children into poverty, disproportionately affecting low-income families and those with disabilities.

Spring Statement 2025 reaction – Thursday’s headlines are reacting to yesterday’s Spring Statement delivered by the chancellor. 

Chancellor Rachel Reeves announced significant measures to address the UK’s economic challenges. Key points include a £14 billion plan involving cuts to welfare payments (£4.8 billion) and departmental spending (£3.6 billion) to fix public finances. The Office for Budget Responsibility (OBR) has halved the 2025 economic growth forecast to 1%, down from 2%. Despite these austerity measures, the tax burden is projected to reach a record 37.7% of the GDP by 2027-28. Additionally, a £3.25 billion Transformation Fund was introduced to drive efficiencies across government departments.

Following the chancellor’s update on the economy, Donald Trump announced new import taxes of 25% on cars and car parts coming into America in a move that threatened to widen the global trade war.

Zelensky urges US and allies to stand strong against Russia – defiant that Russia is the evil empire. He acknowledged the bipartisan support within the US for Ukraine but cautioned against the influence of Russian narratives on American officials that could undermine their stance.

Emmanuel Macron expressed concerns over Russia’s tendency to reinterpret ceasefire agreements, following a recent tentative deal involving Ukraine, the US, and Russia concerning strikes in the Black Sea region.

Chancellor Rachel Reeves says the 2025 growth estimate for the UK has been halved to 1% from 2% by the government’s official forecaster, the Office for Budget Responsibility (OBR)