British Finance Minister Rachel Reeves announced on Wednesday that billions of spending are discounts because she is looking forward to connecting the budget deficit amidst the suspended growth and increasing borrowing costs since its first financial plan, which was issued last fall.

“The responsible option is to reduce our debt levels and borrow in the coming years so that we can spend more on the priorities of working workers,” Reeves said.

Reeves said that the cuts in social welfare that were already identified last week provide 4.8 billion pounds in the social welfare budget, and will enhance measures to return people to work. It has also developed plans to provide investment spending and measures to suppress taxes and evade treasury revenues.

“We are living in an uncertain world,” Reeves said, that defensive spending will increase to 2.5 % of GDP with discounts in external aid that help finance this reinforcement. She also said that the work government planning reforms “will lead to the construction of a home building to the highest level in the forty years” and will help in developing the economy.

The Minister of Finance has already pledged to adhere to the “financial rules” imposed by the self-stipulated in the “Autumn Budget” last October: to ensure the fulfillment of daily spending through tax revenues and that public debt decreases as a share of economic production by 2029-30.

On Wednesday, she repeated her position that these rules were “negotiable” and that her new political advertisements mean that they will meet the so -called “stability” and “investment” early.

Minister of Finance in the United Kingdom Spring statement He was It was delivered alongside the latest economic expectations from the budget responsibility office (OBR), which is an independent public finance in the country.

Reeves said that OBR has reduced UK growth forecast for 2025 and a half of its previous estimate by 2 %.

She said, “I am not satisfied with these numbers. That is why we are on this side of the home are serious in taking the necessary measures to develop our economy,” in response to reducing OBR growth.

She added that OBR promoted its growth forecast for 2026 “and every year after that,” with the International Energy Agency expecting GDP growth by 1.9 % in 2026, 1.8 % in 2027, 1.7 % in 2028, and 1.8 % in 2029.

“By the end of the prediction, our economy is larger compared to OBR expectations at the time of budget,” she said.

Reeves concluded her speech by telling legislators that “the world is changing.”

“We can see this and we can feel it. The changing world is asking a government alongside workers. Working in their interest. Acting in the national interest. Not to retract challenges.”

After the statement, OBR has published its economic expectations She said that the counselor had regained the “financial” financial room “amid” risky expectations. “

“Before calculating policy, the costs of high debt interest and other expected changes in the current budget in the deficit of 4 billion pounds in 2029-30. Politics changes, including social welfare reforms and discounts in spending in daily departments, and restoring them to the surplus of 10 billion pounds, which was the consultant in October,” said IBR. “

“This still is a small margin against the risk of more shocks on interest, productivity, or global trade rates.”

Since its initial budget was offered last October, Reeves has been increasingly pressure to reduce public spending, and to raise taxes further or to discourage financial rules amid the high borrowing costs in the United Kingdom, which eliminated the Capital Hall that Reeves was within the limits of its initial budget.

The UK also faces a temporary height in the inflation rate, According to England Bankalong with The continued economic slowdown In recent months. The commercial definitions of US President Donald Trump, who is seen as inflationary, is introduced to a opposite wind of the economy even though the UK has not yet been targeted.

Reeves indicated on Wednesday that OBR expects that inflation “will reach an average of 3.2 % this year before it quickly decreases to 2.1 % in 2026 and agrees to the target of 2 % of 2027 ascending, giving families and companies the security they need and provides our economy with a stable platform that needs to be growed.”

The Treasury has already issued a press release on Tuesday stating that Reeves will undertake to create “national security and renewal” in its spring statement, which will be designed “to start economic growth, protect working workers and maintain the safety of our country.”

It was widely expected to address the Reeves statement, “The Caliph Hall eroding by controlling the most compromise spending,” as Emily Nicole and Edward Malling noticed at Daiwa Capital Markets before the title Reeves.

At the time of the announcement of the October budget, OBR expected a current budget in the fiscal year 29/30 of about 10 billion pounds, with this amount, which represents the so -called government’s “head room” to face its binding goal of the current balanced budget by that date. Today’s figures indicate that this has been eliminated.

“With the economic growth that was recently lower than OBR forecast – OBR is likely to transfer almost 2.0 % domestic product expectations per year for 2025 – the optimization of general borrowing and the tax revenue agreement may be considered partially due to the periodic weakness that may be in terms of automatically due.”

However, economists have warned that “an increase of about 20-40 basis points in a sectarian yield across most of the curve since mid-October will be considered structurally and this will be done alongside some other slips-in the absence of compensation for new policies-the government hall may erode.”

The erosion of the financial treasury hall in the cabinet and analysts pushed a bank widely on Reeves to announce billions of pounds in costs on Wednesday.

The government had already made plans For 5 billion pounds, spending spending on social welfareIn addition to the intentions of reducing the administrative costs of civil service, which implement government policies, by 15 % by 2030.

“The spring statement will witness an increase in the required borrowing over the next two years due to the highest interest payments. OBR forecasts will require the chancellor to make spending discounts loaded with about 10 pounds Pelon to keep them in the former financial hall,” said Barclays Moyen strategy expert Islam in the economy in America last week.

They added, “These savings are likely to focus on spending on social welfare and the consequences of the public sector, and are late until the second half of Parliament, after 2027.”

Reeves has repeatedly commented that it will not give up its financial bases or raise taxes more at the present time, although economists expect more fees to come later this year.

She said that there is widespread terror in the British business community last fall when it raised the tax burden on companies and employers with a goal, in the words of a hole in public financial resources and allowing investment in public services.

British industry leaders warned that Financial Treasury plans It can weigh on investment, jobs and growth.

Reeves defended the high taxes as a “one -time” measure and necessary to enhance investment in public services. She has repeatedly mentioned that strengthening UK’s growth is her first priority and has pledged that she would not reduce the financial rules or goals she imposed on its department.