Chancellor Rachel Reeves has set out her plans for the UK economy during her Spring Statement in the House of Commons. It came as the Office for Budget Responsibility (OBR) – which monitors the government’s spending plans – unveiled its latest economic forecasts. The Office for Budget Responsibility (OBR) has downgraded predicted growth for this year from 2% to 1%.

Health-related universal credit for new claimants, which was already due to be cut from £97 to £50 per week from April 2026 under measures announced last week, will now not rise with inflation until after 2030. Under-22s will no longer be able to claim the health-related element of universal credit.

The universal credit standard allowance will increase from £92 per week in 2025-26 to £106 per week by 2029-30.

The OBR has estimated changes to England’s planning system announced last year will boost housebuilding by 170,000 over five years. £625m will be spent in England over four years to boost existing schemes to train workers in the construction sector.

Defence spending, which had been due to rise £2.9bn next year, to increase by a further £2.2bn.

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. They have also pledged to hire 400 more HMRC staff to tackle “wealthy offshore non-compliance” – estimated to bring in an extra £500m over five years