Read the Chancellor’s Spring Statement in full: From welfare cuts to defence spending and national living wage

The Treasury has published the Spring Statement in full after Rachel Reeves presented it to Parliament today.

All 50 pages were issued as a PDF after the Chancellor blamed ‘increased global uncertainty’ as the budget watchdog slashed its forecast for economic growth.

The Office for Budget Responsibility halved its forecast for growth in gross domestic product in 2025 from 2 per cent to just 1 per cent.

The watchdog’s assessment also indicated the Chancellor would have missed her goal of balancing the nation’s books without action.

Responding to the growth forecast, Ms Reeves said: ‘I am not satisfied with these numbers.

‘That is why we on this side of the house are serious about taking the action needed to grow our economy. Backing the builders, not the blockers.’

Despite the dramatic downgrade in 2025, she said the OBR had upgraded its forecasts for subsequent years with GDP expected to increase by 1.9 per cent in 2026, 1.8 per cent in 2027, 1.7 per cent in 2027 and 1.8 per cent in 2029.

The watchdog also forecast that the Government’s planning reforms will increase GDP permanently by 0.2 per cent in 2029/30, representing an additional £6.8billion and pushing housebuilding to a ’40-year high’.

Chancellor Rachel Reeves reads her Spring Statement to MPs in the House of Commons today

She was forced to set out measures totalling around £14billion, including a series of cuts, to ensure she met her ‘non-negotiable’ goal of balancing day-to-day spending against tax receipts, rather than borrowing.

Ms Reeves told MPs: ‘The increased global uncertainty has had two consequences. First, on our public finances. And second, on the economy.’

At her budget in October she set out plans which met that goal with £9.9billion to spare in 2029/30.

But she said the updated forecast from the Office for Budget Responsibility indicated she would have missed the target by £4.1billion without taking action to restore the £9.9billion of headroom.

She confirmed a further squeeze on the welfare budget, building on cuts to the disability and incapacity bill set out earlier this month, with the package now expected to save £4.8billion rather than the more than £5billion in 2029/30 hoped for by ministers.

And she signalled cuts in Whitehall, with ‘voluntary exit schemes to reduce the size of the civil service’, taking advantage of technology to ‘make Government leaner, more productive and more efficient’, saving £3.5billion by 2029/30.