Benefits cut, defence boosted in spring statement

• Chancellor Rachel Reeves has announced spending cuts and measures to address a slowing UK economy, revised from 2 per cent to 1 per cent growth, in her spring statement.
• Benefit cuts were a key part of the statement, including reducing the health element of Universal Credit for new claimants and freezing it, alongside a £1bn investment in employment support.
• A £2bn grant will fund 18,000 new social and affordable homes, though the Government acknowledged it will likely fall short of its 1.5 million homes target.
• Defence spending will increase by £2.2bn, going towards new technologies and improvements to military housing.
• A £600m investment aims to train 60,000 construction workers to address labour shortages and boost economic growth, alongside a crackdown on tax avoidance projected to recoup £1bn annually.

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Spring statement 2025 summary: Key takeaways from benefit cuts to tax crackdowns