UK Spring Statement: Further budget cuts and halved economic growth

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UK Spring Statement: Further budget cuts and halved economic growth

^{Published on 2025-03-26 11:21:12 - Euronews}

Britain's Chancellor of the Exchequer Rachel Reeves has laid out the latest on UK public finances. Her statement arrives at a moment when the nation needs to find billions to boost defence spending against the backdrop of an ailing economy.

The UK's Spring Statement, as reported by MSN, outlines a series of economic measures aimed at addressing the ongoing financial challenges. Chancellor Jeremy Hunt announced further budget cuts and a significant revision of economic growth forecasts, now expecting only a 0.2% growth for the year, down from previous estimates. This adjustment reflects the economic strain from high inflation, rising interest rates, and the aftermath of Brexit. Key points include extending the energy price guarantee, maintaining fuel duty freezes, and introducing new investment zones to spur economic activity. However, these measures come alongside warnings of potential recession risks and the necessity for continued fiscal restraint, with public sector pay rises being capped to manage government spending. The statement also hints at future tax adjustments and welfare reforms to encourage employment and manage the cost of living crisis.

Read the Full Euronews Article at:
[ https://www.msn.com/en-us/money/economy/uk-spring-statement-further-budget-cuts-and-halved-economic-growth/ar-AA1BHPfv ]

N@N

UK Spring Statement: Further budget cuts and halved economic growth