Rachel Reeves’ Spring Statement argued the ‘world has changed’ to justify sweeping cuts to Whitehall and DWP benefits
Rachel Reeves has delivered the Spring Statement, unleashing £2billion of spending cuts across Whitehall and revealing even more DWP benefits changes than announced last week. Following the statement, thousands of civil servants are set for the chop and many will see their Universal Credit incapacity benefits frozen until 2030.
Addressing the House of Commons earlier this Wednesday, Reeves argued ‘the world has changed’ since she delivered her first Budget, hiking Defence spending in the face of Russian aggression. However – in order to do so amid grim figures from the OBR – the Chancellor faced difficult decisions to balance the books.
After the spending watchdog said her original welfare reforms – announced last week – would save less than planned, Reeves responded by announcing further savings from Universal Credit. Under the new measures, Universal Credit incapacity benefits will be frozen until 2030.
The Chancellor said: “The OBR (Office for Budget Responsibility) have said that they estimate the package will save £4.8 billion in the welfare budget, reflecting their judgments on behavioural effects and wider factors.
“The universal credit standard allowance will increase from £92 per week in 2025-26 to £106 per week by 2029-30, while the universal credit health element will be cut by 50% and then frozen for new claimants.”. If you can’t see the poll, click here.
Reeves also announced that the OBR had halved its forecast for growth in GDP from 2% to 1%, blaming ‘increased global uncertainty’ for the change. The Chancellor said: “The increased global uncertainty has had two consequences. First, on our public finances. And second, on the economy.”
Concluding her remarks, Rachel Reeves said: “The OBR confirm that our plan to get Britain building will drive growth in the economy and put more money in people’s pockets.
“There are no quick fixes. But we have taken the right choices now. Returning stability to our economy after years of mismanagement by the party opposite.
“Delivering security for our country and security for working people. That is what drives this government. That is what drives me as Chancellor. And that is what drives the choices that I have set out today.”
A recent poll showed that the public believes that Rachel Reeves should prioritise increased spending on public services. The survey for the Autonomy think-tank asked voters whether public services, the military, clean energy, or a Universal Basic Income should be prioritised.
In the survey by Survation pollsters, over half – 53% – ranked public services such as health, education and policing, first., 20% opted for clean energy – including savings on energy bills. Just 16% agreed with the Chancellor – saying the military should be prioritised – and 12% said the government should prioritise Universal Basic Income.
In the build up to the Spring Statement, Rachel Reeves also faced backlash from dozens of women’s organisations, who warned that disability benefits cuts will remove a ‘vital lifeline’ for victims of abuse. Campaigners and researchers told the Chancellor that disabled women are nearly twice as likely to experience economic abuse compared to non-disabled women.
The letter was signed by more than 40 organisations including The Fawcett Society, Surviving Economic Abuse and the Women’s Budget Group. They wrote: “Removing benefits from ill and Disabled women subjected to abuse could be removing a vital lifeline – making it harder to flee abuse and harder to rebuild their lives if they do.”
Speaking exclusively to the Mirror before the Spring Statement, Ms Reeves said: “Our world is changing and Putin is a global threat, but we’re a strong country, and this government won’t just sit back and watch. We will make sure Britain is ready to face down threats in an uncertain world. We’ll bring in a new era of security and renewal.”
Ms Reeves also defended the decision to slash support for the world’s poorest to pay for defence, saying: “The number one priority of any government has got to be to keep its citizens safe and secure.”
What do you think? Do you back Rachel Reeves as Chancellor after the Spring Statement? Take our poll and have your say in the comments below.