Spring statement
- UK growth forecast halved this year
- All the announcements that could affect you
- Follow full spring statement coverage in Politics Hub- here we've answered your questions on what it means for your money:
- Are you better or worse off?
- Are cash ISA changes coming?
- What about pensions?
Essential reads
- Inflation falls unexpectedly|Surprise factor behind fall
- Here's every bill rising next month - and how you can beat the hikes
- Act now if you haven't maxed out your ISA allowance
- 'Someone dropped out of a hen-do last minute. Should she pay?'
Tune in to UK Tonight for all the latest on the spring statement
That's all for our live coverage in the Money blog today but we're working with the UK Tonight team this evening to bring you all the latest on what the spring statement means for you.
Our presenter Sarah-Jane Meeis hosting the show as usual, and our Money live reporter Jess Sharpis joining, along with financial experts Abi Foster and Cameron Smith.
They'll be answering your questions and exploring all the key issues from 8pm - watch along in the stream at the top of the page.
How benefit cuts and public spending decisions affect household incomes
By Saywah Mahmood, data journalist
The Treasury has estimated how government decisions on tax, welfare and public service spending will affect household incomes.
The analysis covers all the decisions made from the autumn budget last year to today's spring statement and looks at the impact across the income distribution - from the lowest to the highest-income households:
Their analysis shows that, on average, the lowest-income households in 2028-29 will benefit the most from government decisions at those events, if decisions relating to public service spending are included.
Increases in tax will mostly affect the highest income households.
But without public service spending decisions included, lower-income households are hit hardest by decisions on welfare changes:
Watch: Spring statement in two minutes - and what it means
In a rush? Catch up on all the key announcements in Rachel Reeves's spring statement here - including welfare cuts and a defence spending boost:
And data and economics editor Ed Conwaycrunches the numbers here:
Labour forecast to miss its housebuilding target - and even build fewer than in past five years
By Joely Santa Cruz, data journalist
Today's report from the Office for Budget Responsibility forecasts that the number of homes in the United Kingdom could increase by 1.26 million over five years.
Labour hopes to achieve 1.5 million additional homes in England alone over the period, so a total equating to 240,000 (16%) below England's target for the whole of the UK falls significantly short of this.
It is also fewer homes than the number built in recent comparable periods.
This decrease is largely driven by a projected fall in completions by the public sector, calling into question whether the government can achieve its goal of delivering a generational increase in social and affordable housing.
Compared to the five preceding years, the number of homes completed by private companies is forecast to increase by 10% to 836,000, while other net additions are expected to fall by 20% to 426,000. This is equivalent to 66% of forecasted new homes built by private companies.
Rachael Williamson, the Chartered Institute for Housing’s interim director of policy, communications and public affairs, said the report showed the government would struggle to meet its building targets without "significant investment in social and affordable homes" to bridge the shortfall.
Reforms to planning are expected to contribute an additional 170,000 to the total increase in housing over the period. These reforms are focused on requirements for local authorities to release land for development unless the adverse impacts significantly outweigh benefits.
Most of the housebuilding increase is projected to take place towards the end of this parliament as housebuilders adjust to the new regulations and interest rates fall.
However, significant workforce shortages will need to be overcome if this acceleration is to take place, with around 240,000 recruits needed across the sector by 2027.
The chancellor today announced a £625m million boost to the construction workforce.
People with very little feel like they're losing out
By Becky Johnson, social affairs correspondent
The stark impact of welfare cuts is 250,000 more people will be living in poverty, including 50,000 children.
For some people already struggling to get by, losing benefits could be the difference between being able to put food on the table for their families - or not.
And the fact that sick and disabled people are those set to lose out adds to a sense that the vulnerable are being targeted.
Few would argue the welfare bill doesn't need looking at. Spending on sickness and disability benefits has ballooned since the pandemic. It stands at around £65bn, with one in ten people of working age now claiming.
Almost a million young people are not in employment education or training. A welfare system that means people signed off sick get around double the amount jobseekers receive has been blamed for incentivising more people to opt out of the workplace.
But an attempt to tackle those perverse incentives will mean many who desperately need the money will lose out.
In Wolverhampton, 57-year-old Winston told me life would be a real struggle if he loses part of his PIP. He thinks he'll probably have to turn the heating off. It'll be okay in the summer, he says, but he's worried about the winter.
At a mother and baby group, one woman agreed that more people should be working. But she can't, she says, due to childcare costs. And as for people off sick she asks where are all the jobs for them?
People with very little feel like they're losing out. They question why the wealthy weren't targeted instead. And don't understand why the chancellor couldn't have broken her self-imposed fiscal rules.
Viewed from Wolverhampton, the chancellor's statement in Westminster appears to target those who can least afford it.
Where was the support for businesses?
In the autumn budget, the chancellor reduced the relief rate for retail, hospitality, and leisure businesses from 75% to 40%.
The industry has been struggling since and has been asking for the government to reform the current system to offer them more support.
But the chancellor failed to make any announcements on the business relief rates.
We asked Andrew Sanford, a partner at leading tax firm Blick Rothenberg...
What impact is this going to have on businesses?
He says: "Business rates reform is hugely overdue.
"It is simply unfair that bricks and mortar businesses, often in the service sector which are being disproportionately hit by national insurance and living wage increases, are being hit with more tax than other businesses.
"Reform is overdue and has simply been put in the too difficult column by successive governments."
Tax burden predicted to rise - what does this mean for you?
The Office for Budget Responsibility has said the tax burden will hit a "historic high" of 37.7% in 2027/28.
It said the main driver of the increase in the tax burden are personal taxes, "particularly income tax and national insurance contributions".
We asked Andrew Sanford, a partner at leading tax firm Blick Rothenberg...
What does a "historic high" tax burden mean for the average person?
He says: "This will mean that the percentage of tax on gross pay will be higher, resulting in less discretionary spend.
"It will make consumers more frugal in their spending and concentrate more on those items that are of necessity."
He adds that he was pleased that no further tax hikes were announced today.
"There was a large tax raising event in October, and tax raises should be just once a year. Business needs certainty and not a frenetic tax raising agenda," he says.
Government finds 250,000 people will be pushed into poverty by its own policy
A government department has found that an additional 250,000 people, including 50,000 children are estimated to be pushed into poverty because of newly announced welfare cuts by the end of the parliament.
Publishing its assessment of the cuts, the DWP said those people would be pushed into relative poverty by 2030, based on its projections.
"It is estimated that there will be an additional 250,000 people (including 50,000 children) in relative poverty after housing costs in financial year ending 2030 as a result of the modelled changes to social security, compared to baseline projections," it said.
"The impact on the number of pensioners in poverty is expected to be negligible," it added.
Some three million families will "financially lose" as a result of the welfare cuts, another report added, with an average loss of £1,720 per year compared to inflation.
"There are also estimated to be 3.8 million families - some current recipients and some future recipients - who will financially gain from this package, with an average gain of £420 per year compared to inflation."
Some will be much harder hit.
The analysis shows just over 370,000 people who currently claim personal independence payments (PIP) will lose them and another 430,000 who would have been eligible for them in the future will not now get it.
They'll be worse off, on average, about £4,500 a year.
What does the statement mean for interest rates?
One topic that is sparking some of our readers attention off the back of the spring statement is interest rates.
Our financial experts were asked...
Will the Bank of England change its interest rate off the back of the statement?
The Office for Budget Responsibility's latest report has indicated that the Bank of England's rate is set to remain higher for longer, compared with previous predictions.
It said the base rate - which currently sits at 4.5% - is expected to drop to around 3.8% in 2026 and remain at this level.
Financial expert and influencer Cameron Smith says...
"The Bank of England’s Monetary Policy Committee will next meet on the 8th of May to vote on whether to raise, hold, or cut the interest rate; so don’t expect any changes to the interest rate until then."
Should we be expecting cash ISA changes?
There was lot of speculation on cash ISAs ahead of the spring statement, and there haven't been any changes made to their tax-free limit.
The investment industry called on Rachel Reeves to reduce the £20,000 tax-free annual limit to £4,000 to encourage more people to invest their savings in stocks and shares.
We knew this was going to be the case ahead of the spring statement but our financial experts have been asked...
Should we expect cash ISA limits to change in the future? What should people be doing with their accounts now?
Influencer and personal finance education Cameron Smith says...
"Annoyingly, any potential changes to the cash ISA continues to be speculation for now... but future announcements could still be held for the autumn budget.
"In the meantime, the cash ISA continues to be a brilliant savings vehicle for short term and long term savings.
"Plus, if speculations are correct, it's only the annual allowance that will be impacted, so any cash ISA contributions you make before the change will not be affected."
