Rachel Reeves sets a package of 14 billion pounds to reform public financial affairs in the United Kingdom

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Rachel Reeves has announced a package of 14 billion pounds to reform public financial resources in the United Kingdom after weak economic growth and high borrowing costs in the country’s financial position after only five months of its first budget in October.

Social welfare discounts will provide 3.4 billion pounds, according to the model of the budget responsibility office, Refiz She said, because she aims to meet her financial rules, which she described early in her statement as “not negotiable.”

It also announced discounts in daily administrative spending of 3.6 billion pounds by 2029-30.

The advisor added that due to its changes, the “head room” of the government-its financial chamber of maneuver-will reach 9.9 billion pounds in 2029-30, the same level that was predicted in October.

It is also expected that the tax compliance measures will collect 2.2 billion pounds by 2029-30, while the expected batch of GDP of planning repairs must reduce borrowing by 3.4 billion pounds by that time.

Although capital spending is increasing, this does not affect the main financial rule of Reeves, which focuses on daily spending.

the Spring statement It is a response to a new set of expectations from OBR, which is the financial financial agency in the United Kingdom, which Reeves confirmed that it had placed 4.1 billion pounds in red against its financial rule. She added that OBR reviewed its growth forecast for 2025 to 1 percent, much less than its previous estimate of 2 percent.

The consultant confirmed that there will be no tax rise and that defensive spending will rise to 2.5 percent of GDP.

The spring statement came before the implementation next month, with a significant increase in the national insurance contributions to the employer, which was announced in the first budget of Reds in October.

This measure is scheduled to collect 23.8 billion pounds in the fiscal year 2025-26, as it rose to 25.7 billion pounds in 2029-30. In addition to the already executed tax increases, including the imposition of value -added tax on private school fees that came into effect in January.

The advisor also exceeds a set of other taxes to raise taxes, including capital gain tax and inheritance tax on agricultural and commercial property.