Spring Statement LIVE as Rachel Reeves confirms further benefit cuts (2025)

Reeves press conference

The Chancellor is now taking part in a press conference in Downing Street.

Former Scottish Labour leader says MPs shouldn't vote for cuts

Former Scottish Labour leader Richard Leonard said: “No Labour government should be doing this. No Labour MP should be voting for it.”

Scottish Government money will be slashed due to cuts

The Scottish Government is facing cuts in the cash it receives from Westminster as a result of Rachel Reeves’s decision to reduce welfare spending, MSPs have been told.

Holyrood Finance Secretary Shona Robison said she has received confirmation from the Treasury that “there will be cuts to our block grant from the welfare cuts from 2026-27 onwards”.

Five ways the Spring Statement will impact Scots

From welfare to defence, the Spring Statement will have an impact on Scots.

Here are the five ways it will impact you.

Benefit cuts will plunge 250,000 people into poverty, warns DWP

Rachel Reeves' benefit cuts will plunge a quarter of a million people into poverty, according to the Department for Work and Pensions (DWP).

An impact assessment published by the UK Government showed that an additional 250,000 people will be in relative poverty due to the cuts.

Read more here

Reeves: People will be £500 better off

At the end of her statement, Reeves said people would be better off than under the Tories.

She said: “Compared to the forecast in the final budget delivered by the party opposite, and after taking account of inflation, the OBR say today that people will be on average over £500 a year better off under this Labour Government.”

Stephen Flynn hits out

SNP Westminster Leader Stephen Flynn has responded to the Spring Statement: "The Chancellor says ‘the world has changed’ but the thing that has really changed is the Labour Party.

“They promised ‘change’ but the Labour Party are today imposing a new era of austerity cuts. They promised to protect people but are today punching down on the poorest. They promised to be different from the Tories but are today repeating all the same mistakes of the past."

He continued: "People in Scotland won't forgive the Labour government for ploughing ahead with billions of pounds of cuts to public services, punching down on the poorest, and making life harder for working families instead of addressing the root causes of Brexit Britain's broken economy.

"The Labour Party has made the wrong political choice, and it is doubling down on failure, by imposing devastating cuts and damaging tax hikes. You can't cut your way to growth - and taking money away from working families and the vulnerable won't improve living standards."

Shadow Chancellor is up

Mel Stride is now replying to the Spring Statement.

Statement finished

Reeves has now finished her Spring Statement.

Cost of living to get worse

Reeves says infaltion will be average of 3.2 per cent this year. It was forecast to be 2.6 per cent in October.

Glasgow to get defence money

Rachel Reeves announces the MOD will receive a further £2.2bn in funding this year.

Some 10% of the MOD budget will go on "new, novel technology" - with Glasgow among the benefactors.

Reeves plans to cut costs for running Government

The Chancellor said it will slash spending on government departments by 15% by the end of the decade.

She also announced £3.25bn of extra investment to reform the way public services are delivered.

Reeves confirms further benefit cuts

Reeves has confirmed further benefit cuts.

The Chancellor announced that "the universal credit health elements will be cut to the new claimants by around 50% and then frozen."

She said that benefit cuts would save £4.8bn and that there had been "final adjustments" since last week's announcements

Welfare cuts will save £4.8bn

Rachel Reeves said the new welfare cuts will save £4.8bn.

No more tax increases

The Chancellor confirms the statement does not include further tax increases.

Reeves hits out at Tories

Reeves has a go at the Tories for crashing the economy under Liz Truss.

She says the public is still feeling the effects of it today.

Reeves is up

PMQs is now over and the Chancellor is delivering the Spring Statement.

Starmer has 'full confidence in the Chancellor'

Asked by a Tory MP if he has confidence in Reeves, Starmer replies: "I have full confidence in the Chancellor."

Labour MP raises SNP ferry scandal

Labour MP for North Ayrshire and Arran Irene Campbell asks the PM about the SNP ferry scandal.

Starmer says the SNP is "failing island communities" and "should be supporting Scottish workers".

Only a few minutes to go

Starmer is still answering questions, but Reeves will be up in less than five minutes.

Starmer urges SNP to remove lord advocate from Scottish cabinet

Tory MP for Dumfries and Galloway urges the PM to do something to remove the lord advocate from the Scottish Cabinet, particularly given the police investigation into the SNP's finances.

Starmer says that Scottish Labour would separate the role of the lord advocate and says the SNP should do so.

Stephen Flynn raises experience of being disabled

Flynn mentions being physically disabled for half his adult life.

He asks how Labour making families with disabled children pporer will help anyone.

Starmer replies that his family had disabilities (his mother).

The PM goes on to have a go at the number of Scots who are out of work and asks what the SNP will do "to help the young Scots who are being failed by their government."

Spring Statement will show UK Government going 'further and faster on the economy'

Starmer has said the spring statement will show the Government going “further and faster on the economy”.

Speaking at the beginning of PMQs, 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.”

PMQs starts

Keir Starmer faces MPs in the House of Commons.

Three Scottish Labour MPs have questions.

Protesters hit Whitehall

Affordable homes spending boost in England must be passed on to Scotland

One of the announcements trailed ahead of the Chancellor’s Spring Statement was a £2billion boost for social and affordable housing in England, which is set to represent a down-payment of a larger funding settlement in the Spending Review in June.

The Scottish Federation of Housing Associations (SFHA) has said that if there any Barnett Formula Consequentials as a result of this announcement, that the funding must be reinvested into Scotland’s affordable homes programme.

It comes after Scottish Government figures yesterday revealed the number of homes built by housing associations in Scotland last year had fallen by over a quarter.

SFHA Director of External Affairs Carolyn Lochhead said: “With the number of homes built by housing associations falling by a quarter last year, the latest Scottish Government statistics again underline the scale of our national housing emergency.

“We note the additional £2billion in funding set out by the Chancellor ahead of the Spring Statement for affordable housing in England. If there are any Barnett Consequentials for Scotland as a result of this announcement, then it simply must be invested in Scotland’s affordable homes programme.”

“Following the Chancellor’s Spending Review in June, we also need to see the UK and Scottish Government commit to a multi-year funding settlement for Scotland’s Affordable Housing Supply Programme.”

Here comes Reeves

Glaswegian Pat McFadden favourite to be next Chancellor

Pat McFadden is the favourite to be the next Chancellor, according to William Hill.

The Paisley-born, Glasgow-raised MP is one of the top figures in Keir Starmer's Cabinet.

WIlliam Hill has him at 5/2 to take over from Reeves, ahead of Darren Jones (7/2) and Wes Streeting (7/1).

At fifth is East Lothian MP Douglas Alexander at 10/1.

Spokesperson for William Hill Lee Phelps said: “With today’s Spring Statement likely to announce further tightening of the purse strings, the coming months might prove to be a tricky period for the already under-pressure Chancellor Rachel Reeves, and we make it a 36% chance that she is no longer in position come this time next year.

“Seemingly waiting in the wings should Reeves stand aside is current Minister for Intergovernmental Relations, Pat McFadden, who is our current favourite to be next Chancellor at 5/2, ahead of Darren Jones and Wes Streeting.”

Less than an hour to go

Rachel Reeves will be up in the House of Commons in less than an hour.

But first, Keir Starmer has Prime Minister's Questions.

In other news: MacAskill elected Alba leader

Kenny MacAskill has been announced as the next leader of Alba following the sudden death last year of Alex Salmond.

The former justice secretary was announced the winner today of a two-race horse with Ash Regan, the breakaway party's sole MSP.

Read more here.