Spring Statement 2025: Key points at a glance

Chancellor Rachel Reeves has set out her plans for the UK economy during the Spring Statement in the House of Commons.

It comes as the Office for Budget Responsibility (OBR) - which monitors the government's spending plans - unveils its latest economic forecasts.

Here is a summary of the main points.

• Incapacity benefits under universal credit (UC) to be halved and cut for new claimants
• It comes after official forecasters said a package of cuts announced last week would save only £3.4bn in 2030 rather than £5bn initially claimed by ministers
• The package included a stricter eligibility test for personal independence payments (Pips), the main disability benefit, from November 2026
• Incapacity benefits to be frozen in cash terms for existing claimants at £97 per week from April next year, with a top-up payment for those with the most severe conditions
• Those aged under 22 will no longer be able to claim the incapacity benefit top-up of universal credit

• Live: Follow the latest on the chancellor's announcement
• Analysis: Low growth and higher borrowing costs have blown budgetary numbers off course

• The Office for Budget Responsibility (OBR) has downgraded predicted growth for this year from 2% to 1%
• But it has upgraded estimated growth for the next four years, to 1.9% next year, 1.8% in 2027, then 1.7% in 2028, and 1.8% in 2029
• Inflation forecast to average 3.2% this year, up from 2.6% previously forecast, before falling back to 2.1 in 2026
• Inflation expected to hit 2% government target from 2027

• Defence spending, which had been due to rise £2.9bn next year, to increase by a further £2.2bn
• The Treasury says this will take military expenditure to 2.36% of national income next year, a "down payment" on plans to raise it to 2.5% by 2027
• Ministers say the spending will be funded by reducing overseas aid from 0.5% to 0.3% of gross national income in 2027, and from the Treasury's reserves

• Target to reduce the administrative costs of government departments by 15% by 2030
• About 10,000 civil service jobs are expected to go, including staff working in HR, policy advice, communications and office management