Chancellor reveals halving of forecast UK growth this year and extra defence spending

• Spring statement 2025: key points at a glance
• Politics live – updates
  

Rachel Reeves has confirmed deep cuts to welfare and public services offset by billions of pounds in long-term investment to grow the economy, as she delivered a spring statement to ensure her fiscal targets are still being met.

In a statement to the Commons which revealed the UK growth forecasts for this year had been halved, the chancellor said her measures would ensure a predicted £4.1bn hole in the public finances within five years would be turned back into a £9.9bn surplus.