Spring Statement highlights

Did you miss Chancellor Rachel Reeves’ Spring Statement on Wednesday (March 26)? In the analysis below, Joy Johnson of Unite’s political department presents all the highlights, including Unite general secretary Sharon Graham’s reaction.

This week is all about the Chancellor’s Spring Statement.  There is of course a lot of other news about President Trump, for example, calling this major security leak that his most senior group (Signal national security) had shared operational details for bombing Yemen in a group WhatsApp chat as the ‘only glitch in two months’.

It also beggars belief that the head of security Michael Waltz had sent a connection request on Signal to the magazine’s editor in chief Jeffrey Goldberg.   

And right there in print we saw the depth of hostility towards Europe including the UK from among others the Vice President calling Europe freeloaders and pathetic.

Perhaps now we will hear less of a special relationship between the UK and America.

Chancellor Reeves and her Spring Statement

There has been much talk of cuts in welfare, but Rachel Reeves wanted to shift the talk to what this government has done in Britain in a changed world.

She said that the Labour government’s planning reforms are expected to permanently increase the level of growth in the UK economy.

Health-related Universal Credit for new claimants, which was already due to be halved from April 2026 under a package announced last week, will also now be frozen in cash terms until 2030.

The standard allowance for Universal Credit will now rise to £106 per week, instead of £107 per week in 2030.

There will also be a stricter eligibility test for Personal Independence Payments (PIPs), the main disability benefit, from November 2026.

Those aged under 22 will no longer be able to claim the incapacity benefit top-up of Universal Credit.

No tax changes in this Spring Statement

Chancellor Rachel Reeves says the 2025 growth estimate for the UK has been halved to 1per cent from 2 per cent by the government’s official forecaster, the Office for Budget Responsibility (OBR).

In her Spring Statement, she announces “final adjustments” to benefits changes unveiled last week – she says the cuts will save £4.8bn in the welfare budget.

“The global economy has become more uncertain,” she says, telling MPs she has met her stability and investment rules two years early.

New measures on cracking down on tax avoidance and evasion will make an extra £1bn in savings.

The chancellor faces pressure over the performance of the economy, with growth remaining sluggish despite being the government’s top priority of improving living standards.

Shadow Chancellor Stride says tax burden will rise to record levels under Labour.

Stride says Reeves has “tanked the economy”.

He said the £22bn black hole in the public finances that Labour says they were left with by the Tories, was made up by Reeves.

Reeves is not ramping up taxes in her statement, but this is “cold comfort” to people across the country.

He asks if Reeves could reassure the country that she will not ramp up taxes further in the autumn.

Spring Statement: Unite reaction

 In response to chancellor Rachel Reeves’ spring statement on Wednesday (March 26) Unite general secretary Sharon Graham said:

 “Rachel Reeves is right — the world has changed but why is it always everyday people that have to pay the price. They paid the price after the 2008 crash, the Covid pandemic and are now expected to pay the price again. It is simply wrong.

 “Leadership must mean we look at the long-term future of Britain, not reacting piecemeal.  As the world changes, solutions and policies must change. There is absolutely no point doggedly keeping to fiscal rules, while society crumbles around you. There will be no brownie points for a clean sheet on fiscal rules amid a broken economy.

 “Workers and their communities won’t thank or forgive Labour for maintaining outdated financial discipline, while they face economic misery and can’t make ends meet. This is the time for vision especially if we need growth.

“The government is right to invest in our defence in an uncertain global world. The chancellor’s commitment to produce more defence equipment in the UK is welcome but those promises must be backed up by decisions starting with the RAF buying replacement Typhoon fighter jets, protecting thousands of skilled jobs.

 “Increased defence investment must not come at the expense of our public services and investment in British industry and our industrial infrastructure. Why is the sixth richest economy in the world pitting our safety against our dignity. That is not the choice that should be made.

“There is another path. Instead of snatching crumbs from workers, pensioners and the disabled, Labour should target the massive concentration of wealth built up by the richest one per cent. A wealth tax, as well as fairer taxes on corporate profiteers and the highest earners, would deliver far more money than any cuts to benefits and public services.

 “Workers and communities need the government to fight their corner.”

“If the government pushes down a path of austerity mark two, where yet again workers and communities pay the price, Unite will not stand by and watch it happen. We will do all in our power to fight for the future of jobs, services and our communities.”

By Joy Johnson, Unite political department