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.
Economic growth in doubt – OBR warning and Trump tariff
Rachel Reeves warned of tax rises ahead despite £14bn plan to fix public finances
Explainer – The headline suggests a negative framing. It emphasises the possibility of tax increases, which can evoke concern, while downplaying the positive aspect of a concrete financial plan. The use of “warned” implies a sense of threat or risk, shaping readers’ perceptions before they engage with the full context of the article. This choice of language can contribute to a more critical view of Rachel Reeves’ proposals.
- Beyond welfare cuts, the FT reports on the warnings to the chancellor that she might be forced to raise taxes in the Autumn Budget. OBR forecasters told Reeves that the £9.9bn “headroom” the government has against the Treasury’s fiscal rules might be wiped out in a global trade war.
Trump’s tariffs threaten to wipe out UK’s economic growth
Explainer – The headline uses strong, dramatic language that emphasises the potential negative impact of Trump’s policies. The phrase “wipe out” conveys a sense of total destruction, which may heighten readers’ fear or concern. Additionally, the headline frames the situation as a direct and severe threat, without offering nuance or alternative perspectives, contributing to a more alarmist tone.
- The Times covers the full-blown trade war being triggered by Donald Trump. The paper reports on the OBR’s warning of the impact tariffs could have should Trump go through with the threat. Trump reportedly plans to introduce tariffs of up to 20% on UK exports to the US on Tuesday, a day which he has called “liberation day”. The Times notes the OBR said this level of tariff would wipe 0.6% off economic growth by 2026, rising to 1% if the UK retaliated with its own tariffs on US goods.
Reeves refuses to rule out tax raid at autumn Budget
Explainer – The headline uses loaded language to create a negative impression. The term “tax raid” is emotive and suggests an aggressive and unfair approach to taxation, rather than a neutral or necessary fiscal measure. Additionally, “refuses to rule out” implies stubbornness or secrecy, framing Rachel Reeves in a negative light. This choice of words can influence readers to view her policies with suspicion or concern.
- The Daily Telegraph reports the OBR has warned the chancellor she faces a 50/50 chance of having to raise more revenue to meet her fiscal rules. The paper says the OBR also described the employment rights bill as a threat to growth, productivity and jobs.