Spring Statement news: Public spending cuts likely
Recent reports indicate that the Chancellor has drawn up draft plans for spending cuts to welfare and other government departments. At the time of the 2024 Autumn Budget, the Office for Budget Responsibility (OBR) stated there was a £9.9 billion buffer within the Chancellor’s self-imposed borrowing rules. However, the OBR’s spring forecast is expected to reveal that this buffer has disappeared due to recent events, including trade tariffs, the war in Ukraine, rising inflation, and increased borrowing costs. One possible alternative could be for the Chancellor to adjust her borrowing rules. However, this would risk damaging credibility with financial markets, [...]