UK Finance Minister to Address Economic Growth Concerns in Spring Statement
LONDON, March 26 (BERNAMA-PA Media/dpa) – UK Finance Minister Rachel Reeves will acknowledge the need to go "further and faster to kickstart growth" as she scrambles for savings to help balance the nation’s books without hiking taxes, PA Media/dpa reported.
The Chancellor of the Exchequer will be forced to take action to stick to her rule of meeting day-to-day spending through tax receipts, rather than extra borrowing, in response to gloomy forecasts from the Office for Budget Responsibility (OBR).
Gloomy Forecasts
The OBR is widely expected to slash its forecast for economic growth, following similar recent revisions by the Bank of England and Organisation for Economic Co-operation and Development (OECD). The government has also borrowed more than previously expected, with the cost of those loans rising – in part due to global turbulence.
National Security and Defence Spending
In her spring statement, the Chancellor will tell members of parliament (MPs) that a "more insecure world" requires a greater focus on national security, with a promise to increase defence spending by £2.2 billion (US$2.85 billion) from April as part of the previously announced plan for the biggest boost in military funding since the Cold War.
Chancellor’s Record
Reeves will tell MPs that she is proud of her record in office – despite the sluggish economic growth figures which have heaped pressure on her. She will highlight her achievements, including restoring stability to public finances, giving the Bank of England the foundation to cut interest rates three times since the general election, rebuilding public services with record investment in the NHS, and increasing the national living wage to give three million people a pay rise from next week.
Chancellor’s Plans
Ahead of the statement, the Chancellor has:
- Said the UK has "not been immune" from "increases globally in the cost of government borrowing"
- Insisted that "economic stability is non-negotiable" and she will "never play fast and loose with the public finances"
- Promised that she would not use the spring statement to raise taxes
- Confirmed plans to tell Whitehall departments to cut administrative budgets by 15 per cent, expected to save £2.2 billion a year by 2029-30
- Announced £2 billion of funding for social and affordable homes in England
- Promised to train tens of thousands of construction workers to help deliver the promised 1.5 million new homes in England before the next election
- Released an impact assessment indicating how many people will be hit by previously announced plans to cut £5 billion off the welfare bill
Conclusion
The UK Finance Minister’s spring statement is expected to address concerns over economic growth and national security, as well as the government’s plans to balance the nation’s books without hiking taxes. The Chancellor’s actions are expected to impact various sectors, including defence, construction, and welfare.
Frequently Asked Questions
Q: What is the UK Finance Minister’s plan to address economic growth concerns?
A: The Chancellor will announce measures to go "further and faster to kickstart growth" and balance the nation’s books without hiking taxes.
Q: What is the expected impact on defence spending?
A: The Chancellor will increase defence spending by £2.2 billion from April as part of the previously announced plan for the biggest boost in military funding since the Cold War.
Q: How will the government balance the nation’s books without hiking taxes?
A: The Chancellor will take action to meet day-to-day spending through tax receipts, rather than extra borrowing, to balance the nation’s books.