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Rachel Reeves to unveil £2.2bn UK defence spending boost in Spring Statement

Digest opened free editor

Chancellor Rachel Reeves will increase the defense spending in the United Kingdom by 2.2 billion pounds next year because it provides a dark spring statement that will claim that its economic plans have been detonated through a “changing world”.

Refiz On Wednesday, she will insist that it provides “security” for the British people – from a military and economic point of view – but its rhetoric towards deputies will be dominated by the global growth data, the sparkling financial hole and the recognition that things can get worse.

You will try a positive mode on GriefInsisting that an additional dose of 2.2 billion pounds of military spending from April will enhance jobs in British defense companies.

Additional financing, which will come from new discounts to the aid budget abroad and the Treasury Reserve, will reach defensive spending in the UK to 2.36 percent of GDP in the fiscal year 2025-26.

Reeves has already said that it would reach 2.5 percent in 2027 – an additional 6.4 billion pounds – with funding from a greater raid on the external aid budget. “With high defense spending, I want the entire country to feel the benefits as well,” she says.

The advisor’s statement will be held under Donald Trump, who forced elections as an American President of Britain to increase military spending. Reeves admitted that Trumpan’s global trade war will also create economic “opposite winds” and reduce growth.

The consultant will correct a hole in public financial resources, which amounts to about 15 billion pounds, which has been created through slow growth and high borrowing costs, with a wave of cuts in government care and spending, although it denies that it belongs to “austerity”.

It will also publish expectations from the independent budget responsibility office, which is expected to start half to grow in October 2025 by 2 percent.

Treasury officials say that there will be no tax rise in its statement, but economists believe that it can become inevitable in its autumn budget unless the country’s economic fortunes quickly begin to improve.

The consultant is distinguished by the conservatives who claim to supervise a return to “austerity”, a claim that the ministers are determined to travel.

Darren Jones, the main secretary of the Treasury, briefed on Tuesday 75 ministers Spring statement The plan, which is expected to include a cut of at least 5 billion pounds annually from the total spending in Whitehall later in Parliament.

He said that this was not “austerity”, noting that real spending on public services will rise every year in this parliament and was growing from a higher base, following the Riffs Great injection of cash in NHS and other areas in its budget in October.

Paul Johnson, head of the Institute of Financial Studies, said that talking about austerity “is exaggerated in the context of what the government announced in October and compared the declared plans for the last government.”

Reeves fights some negative feelings because of its dealings with the economy. Yougov poll found that only 16 percent of voters believe that the government is dealing with the economy well. Only 11 percent have a positive vision of Reeves’s performance.

On Tuesday, the counselor was publicly criticized by a ministerial colleague to take the “promotional gift” tickets to the Sabrina Najjar party, 24 hours before the announcement of deep luxury and public spending discounts.

Housing Minister Matthew Benikok was asked about the opinion of Reeves’s decision to attend the ceremony in the VIP fund earlier this month without paying the price of tickets.

“I don’t think it’s personally appropriate,” Benikok told LBC. “If I want to go to a promise in O2, I will pay for it. But individual deputies, individual ministers make their own decisions.”

Reeves said she had accepted a VIP package for security reasons, “but many Labor Party representatives questioned her rule at a time when she was doing deep discounts on the advantages of disease and disability.

The advisor, along with the spring statement, will publish an assessment of how 5 billion pounds of luxury cuts, as many Labor Party representatives fear political repercussions.

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2025-03-25 22:01:00

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