Spring Statement: Reeves Plans Additional Welfare Cuts While Increasing Defence Spending

The government plans to increase defense spending to 2.5% of the UK's economic output by 2027, a move deemed necessary by Chancellor Rachel Reeves in light of growing global insecurity. The Office for Budget Responsibility has revised the UK growth forecast for 2025 down from 2% to 1%. To bolster national security and economic stability in response to these sluggish growth projections, Reeves announced an additional £2 billion for defense spending. Meanwhile, critics such as Sir Keir Starmer have described the welfare system as "morally indefensible" and in urgent need of reform.