Browsing: OBR

The UK economy grew by 0.7% in the first quarter of the year, outpacing expectations and marking a stronger start to 2025 than analysts had predicted. The Office for National Statistics (ONS) reported that growth was primarily driven by a resilient services sector, alongside significant gains in industrial production.

Economists say Chancellor Rachel Reeves may have to raise taxes in the October Budget.

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.

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.

Cliff Notes – Spring statement 2025 key takeaways The Office for Budget Responsibility has halved the UK’s growth forecast for…

Chancellor Rachel Reeves will provide an economic update on 26th March, Wednesday, following a fiscal statement made last October, amid growing speculation regarding potential breaches of her borrowing rules.

Government borrowing surged to £132.2bn last month, significantly exceeding forecasts and representing a £15bn increase from the previous year.

The Treasury plans to announce substantial spending cuts to realign public finances ahead of the Spring Statement. Escalating borrowing costs…

Plaid Cymru leader Rhun ap Iorwerth warned the rise in employer national insurance contributions from 13.8 per cent to 15 per…

UK growth forecasts downgraded for next two years The Office for Budget Responsibility (OBR) has said the UK economy will…