Sue Whitbread

4 weeks ago | ifamagazine.com | Sue Whitbread

Paul Johnson, Director of the IFS, said:  “This was just about the smallest fiscal event Rachel Reeves could have managed in the context of her fiscal rules and the minor forecast downgrade presented to her by the OBR. The fact that a fairly run-of-the-mill change to the forecast forced her to cut her spending plans reflects the tiny amount of headroom she chose to leave against her targets last October.

4 weeks ago | ifamagazine.com | Sue Whitbread

With October’s Budget leaving very little fiscal headroom and the OBR’s economic growth forecasts for 2025 proving too optimistic, today’s measures are more about keeping the wolf from the door, with more significant fiscal measures expected later in the year. Amidst the challenges, there were some positives. The announcement of £2 billion in grant funding to build up to 18,000 new social and affordable homes was welcome.

4 weeks ago | ifamagazine.com | Sue Whitbread

Today’s Spring Statement confirms that NS&I’s whole-year Net Financing forecast for 2024-25 is £10.5 billion (excluding Green Savings Bonds). This is in line with its Net Financing target of £9 billion (+/- £4 billion), set out in the Spring Budget on 6 March 2024. NS&I’s overall Net Financing performance for 2024-25 will be announced as part of its annual results later in 2025.

4 weeks ago | wealthdfm.com | Sue Whitbread

However, Reeves hasn’t exactly been awash with good news otherwise, in her quest to deliver economic growth. With global economic uncertainty, UK growth remaining sluggish, higher than expected borrowing and the fiscal headroom she thought she might have last Autumn now being cut, cuts to government departments – particularly the welfare budget already subject to sweeping cuts already announced – were firmly on the agenda. It’s a very challenging time for the economy that’s for sure.

4 weeks ago | ifamagazine.com | Sue Whitbread

However, Reeves hasn’t exactly been awash with good news otherwise in her commitment to economic growth. With global economic uncertainty, UK growth remaining sluggish and the fiscal headroom she thought she might have last Autumn, now being cut, cuts to government departments – particularly the welfare budget – were firmly on the agenda as she announced her spending plans.