Spring statement 2025 summary: Key takeaways from benefit cuts to tax crackdowns
Stay up to date with notifications from The Independent
Notifications can be managed in browser preferences.
Benefits cut, defence boosted in spring statement
- Chancellor Rachel Reeves has announced spending cuts and measures to address a slowing UK economy, revised from 2 per cent to 1 per cent growth, in her spring statement.
- Benefit cuts were a key part of the statement, including reducing the health element of Universal Credit for new claimants and freezing it, alongside a £1bn investment in employment support.
- A £2bn grant will fund 18,000 new social and affordable homes, though the Government acknowledged it will likely fall short of its 1.5 million homes target.
- Defence spending will increase by £2.2bn, going towards new technologies and improvements to military housing.
- A £600m investment aims to train 60,000 construction workers to address labour shortages and boost economic growth, alongside a crackdown on tax avoidance projected to recoup £1bn annually.