Spring Statement fury as Rachel Reeves blames anyone but herself for welfare cuts and

Downing Street has released a readout of the Cabinet meeting earlier today in which Rachel Reeves described her upcoming Spring Statement as reflecting a ‘slowing outlook for global growth’.

Here is the readout in full:

The Chancellor welcomed the fall in inflation this morning and said the spring statement followed choices the Government took in the autumn budget to fix the foundations of the economy, put record investment in the NHS – delivering five months in a row of falling waiting lists – the rolling-out of free breakfast clubs to all primary schools, a £1,400 increase in the national living wage for three million workers coming in next week, £100 billion of increased capital investment and a £190 billion increase in day-to-day spending for public services.

The Chancellor said the spring statement would reflect a slowing outlook for global growth, which underlined the importance of the Government’s growth agenda which had already seen the Government back key projects including Heathrow, East-West Rail, the Old Trafford regeneration and yesterday’s decision to approve the Lower Thames Crossing.

The Chancellor said you do not deliver growth by abstaining on these decisions as previous governments had done, but by getting on with delivering the key projects and reforms needed to the UK’s planning system and changing the way the state operates to be more agile and effective, and deliver better value for taxpayers.

The Chancellor concluded by saying today’s spring statement would demonstrate the Government’s plan to deliver higher growth, higher living standards and better public services, built upon the key foundation of economic stability.

Stephen Flynn, the SNP’s leader in Westminster, has challenged Sir Keir Starmer on how children will be lifted out of poverty in Scotland following welfare cuts.

Mr Flynn told the Commons that as someone who had suffered a physical disability, he knows the difficulties awaiting those whose payments may be reduced.

He said he wanted the Prime Minister to tell the children in Scotland how making their mums and dads poorer will help lift them out of poverty.

Mr Starmer said welfare reforms were needed to help people back into work and claimed 84,000 young people in Scotland were not in employment or education.

Kemi Badenoch branded the Spring Statement an ’emergency budget’ – a phrase she has used often in recent weeks – and said it amounted to Reeves scrambling to fix the mess she made in October.

She has then turned her attentions to Bridget Phillipson, the Education Secretary, and questioned why the Government voted against banning phones in schools last week.

The Prime Minister responded by saying such a move was ‘unnecessary’ as most schools already have a ban in place, and added the battle should be over content on mobile phones.

Prime Minister’s Questions has now started.

Speaking at the beginning of Prime Minister’s Questions, half an hour before Rachel Reeves delivers the statement, he said:

Today’s spring statement will showcase a Government going further and faster on the economy, greenlighting the Lower Thames Crossing, investing £2 billion in 18,000 affordable homes for working families, 60,000 young people being trained as the next generation of construction workers, and fixing millions of potholes.

We’re undoing a decade of stagnation, to bring jobs and opportunities for working people and securing Britain’s future.

We will bring you the best lines from PMQs before the Spring Statement which is immediately afterwards.

This is the moment Rachel Reeves was asked whether she was in ‘panic mode’ as she left Downing Street for the Commons.

The Chancellor was also asked if she would be announcing ’emergency cuts’ in her Spring Statement later.

Watch the exchange below:

Here’s what the Conservative leader Kemi Badenoch has had to say today as her party prepares its response to the Spring Statement.

In a post on X, Ms Badenoch tweeted:

Rachel Reeves claimed to be smashing a glass ceiling, but now the roof is falling on all of our heads.

Shadow chancellor Mel Stride is likely to respond to Rachel Reeves in the Commons when she finishes delivering her statement this afternoon.

Rachel Reeves has now left Downing Street to make her way to the Commons to deliver her Spring Statement .

The Chancellor gave a brief smile for the cameras as she headed for Parliament, where she will lay out her plans after PMQs.

However, Ms Reeves has already suffered a blow with the Treasury watchdog rejecting her claimed savings from benefits curbs.

Some protesters waved placards against the planned welfare cuts which will be announced later.

The Prime Minister has been pictured leaving Downing Street as he heads to Parliament for Prime Minister’s Questions.

Mr Starmer will face questions from Conservative leader Kemi Badenoch in the Commons from 12pm before the Spring Statement.

Rachel Reeves is expected to leave Downing Street imminently after putting the final touches to her Spring Statement which will be delivered in Parliament this afternoon.

Earlier we reported Ms Reeves was dealt a major setback last night when the Treasury watchdog rejecting her claims for savings of around £5 billion from benefits.

Instead, the OBR valued them at more like £3 billion, meaning the Chancellor was faced with a last-ditch effort to find more cuts despite anger from Labour MPs and voters.

Another £500million is apparently being trimmed from welfare, with the rest from other areas.

Meanwhile, the Chancellor was provided some relief when inflation fell more than expected to 2.8 per cent in February.

Ms Reeves and Sir Keir Starmer have both made reference to a ‘changing world’ this morning in a sign the Chancellor will blame global events for the UK’s stuttering economy.

Inflation fell more than expected to 2.8 per cent in February, but remains above the Bank of England’s target.

At its peak, inflation stood at 11.1 per cent. The latest ONS figures show that consumer prices index inflation fell from 3 per cent in January to 2.8 per cent in December.

The headline figure had been steadily falling in 2024, before a surprise uptick in August. It has sat above the central bank’s target since October, despite forecasts that it might stay static or even fall further.

While the headline rate has dropped by more than anticipated, core inflation remains sticky at 3.5 per cent, while services inflation remained at 5 per cent.

Helen Miller, deputy director of the Institute for Fiscal Studies, told Radio 4’s Today programme the Chancellor made promises she was unable to keep ahead of her Spring Statement later today.

Watch the interview below:

by James Tapsfield, MailOnline’s Political Editor

Gordon Brown rarely made jokes – good ones, at least.

He was, however, fond of quipping that there are two types of Chancellor, ‘those whose careers end in failure and those who get out in time’.

Rachel Reeves will deliver her Spring Statement today not even a year into her stewardship of No11, and she’s already missed the latter option.

Allies stress she inherited an awful legacy of huge Covid debt and unrealistic spending plans.

But it is increasingly hard to make the case that she has improved things.

The decision to hike national insurance on employers – a tortured effort to find a huge tax rise that did not smash Labour’s manifesto – is backfiring.

Her spending plans have turned out to be just as implausible as those of her predecessors, needing to be effectively torn up after just five months.

Worryingly, things could get even worse soon as the asteroid of Donald Trump’s global trade war has yet to hit.

Whispers are getting louder in the corridors of Westminster about Ms Reeves’ judgment, and her future. She is the focus of much Labour ire about benefits cuts and alleged ‘austerity’.

Catty briefings emanating from the Treasury about other Cabinet ministers trying to defend their departmental budgets have damaged relations.

Ministers are also stopping short of full-hearted support in interviews about her freebies habit.

Whatever Ms Reeves has in the locker today to improve the outlook had better be good. Because a toxic atmosphere is building around her – and she is at risk of becoming the latest victim of Gordon Brown’s axiom.

We’ve now seen Cabinet ministers leave Downing Street after their weekly meeting before PMQs and, today, the Spring Statement.

Foreign Secretary David Lammy, Culture Secretary Lisa Nandy, Commons Leader Lucy Powell and Net Zero Secretary Ed Miliband were all captured heading out of Number 10.

A tightening of eligibility for the main disability benefit personal independence payment (Pip) and cut to the health element of universal credit (UC) have prompted stark warnings and calls for a rethink.

Changes to Pip are expected to account for the largest proportion of savings, with the Resolution Foundation think tank estimating…