Rachel Reeves insisted her plans for the UK economy are “working” despite having to make billions of pounds of public spending cuts to plug a massive hole in the nation’s finances.

Experts said economic growth this year will only be half what they forecast six months ago at the Budget.

Delivering her Spring Statement, the chancellor also confirmed that reforms to the welfare system will not save as much money as the government had hoped - forcing her to make a further £500m of cuts.

However, Reeves was able to announce that the Office for Budget Responsibility (OBR) has upgraded its forecasts for economic growth for the next five years.

They also said that households will be on average more than £500 better off by the time of the next election.

She 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.”

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