Rachel Reeves revealed measures in her speech to the House of Commons yesterday (March 26) – announcing around £14bn in public spending cuts to balance the UK’s books by 2030.
The Chancellor blamed the cuts on what she called a climate of “increased global uncertainty”.
They included reducing the size of the civil service by 15 per cent and trimming day-to day Government spending by a projected £6.1bn by the end of the decade.
Ms Reeves announced controversial welfare cuts meant to save £4.8bn, according to the Office of Budget Responsibility (OBR). This could affect more than 3m families on disability benefits – but would accompany nearly £1bn invested in getting people in work.
Still, she revealed that the UK’s defence budget was set for a £2.2bn boost on the back of slashed overseas aid. And she vowed to crack down on tax avoiders – which she said would pull in £7.5bn.
Yasmin Qureshi MP, who represents Bolton South and Walkden, expressed ‘concern’ about the impact of the cuts.
She said: “I understand that the Chancellor has had to make some difficult decisions in these challenging times, but I’m concerned about the impact of further cuts and whether the burden is being shared fairly.
“Throughout my time in Parliament, I have stood up for those who are struggling the most, and I will continue to advocate for the most vulnerable in Bolton South and Walkden, working constructively to ensure that this approach is not relied upon in the long term and that we find fairer, more sustainable solutions for the future.
“I will be reading the proposals very carefully when they are published and speaking with colleagues to discuss the impacts any changes could have on vulnerable people.”
The Chancellor said in her statement that the effect of the Government’s growth policies is estimated to result in an “additional £3.4 billion to support our public finances and our public services by 2029-30”, which she dubbed the “proceeds of growth”.
She added that the Planning and Infrastructure Bill would “help deliver the homes and infrastructure our country badly needs”.
Cllr Nick Peel, Leader of Bolton Council, said: “Today’s Spring Statement confirms that real change is underway. After years of chaos and economic failure under the Conservatives, the Labour Government is taking action to get Britain back on track – with investment in public services, support for working families, and the long-term reforms we need to rebuild our economy.
“The extra funding for skills, housing and local growth is welcome, and will help us deliver real improvements for people here in Bolton. Our borough stands to benefit from stronger investment rules, planning reform and new housing targets – which will boost good jobs and help tackle the housing crisis.
“But I know many residents will be concerned about the planned changes to welfare. Bolton is home to many people with disabilities and complex health needs – and I will be working closely with local partners and MPs to make sure no one is left behind. We’ll be scrutinising the impact of these changes closely, and I will always speak up for our most vulnerable.
“This Government’s mission to deliver for every community must include ours. I’m committed to making sure Bolton gets its fair share – and that every pound of investment helps build a safer, fairer and more prosperous borough for all.”
Kirith Entwistle MP, who represents Bolton North East, said this was ‘encouraging’.
She said: “There was a lot of encouraging news in the statement coming from our long term plan for change and growth.
“It’s fantastic to see that our plans to reform planning and kickstart development of infrastructure and housing will have such a positive impact on the economy while giving people across the country the support they need to access housing.
“Alongside that we see disposable income will grow at double the rate this year than was expected, and on average people will be £500 a year better off under the Labour Government after inflation is factored in, that’s real people feeling the benefits of our investments.
“Obviously there is a lot more work to do but that long term view shows we’re headed in the right direction.”
Phil Brickell MP, who represents Bolton West, welcomed the Chancellor’s measures – particularly those cutting tax evasion.
He said: “The independent Office for Budget Responsibility (OBR) confirmed that households in Bolton will on average be £500 a year better off as a result of decisions made by this government.
“There’ll be no tax increases for working people. Instead, we’ll see a concerted crackdown on tax dodgers looking to avoid paying their fair share.
“The government’s drive to stop criminal tax evasion will raise £7.5bn per year which can be invested in schools, hospitals, care and policing – vital to deliver the high-quality public services my constituents deserve.
“In addition, I welcome the Chancellor’s announcement of an extra £2.2bn for defence spending at times of increasing insecurity around the world.
“This is a huge boost for the security of our nation and the UK economy with the money invested into British industry.
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“With one in eight people out of employment, education and training, it’s vital that our young people can realise their full potential.
“I welcome the Government’s measures to support those who can work and want to do so into employment, as well as the increase in welfare spending through the life of this Parliament, and protect the most vulnerable in our society.”
Based on the statement’s proposals, the OBR halved its forecast for growth in gross domestic product (GDP) in 2025 from 2 to 1 per cent.
But it said GDP was expected to increase in subsequent years – by 1.9 per cent in 2026, 1.8 per cent in 2027, 1.7 per cent in 2028 and 1.8 per cent in 2029.
