The chancellor’s Spring Statement dominates the front pages. The i Paper reports that Rachel Reeves refused to rule out future tax rises in the Autumn budget, noting her announcement of sharp cuts to benefits could push 250,000 people into poverty. It also says that the cuts come amid a struggle to find any economic growth – with official forecasts for the economy’s expansion halved to 1% next year.
Furious reaction to the planned welfare reductions lead Metro’s front page. The paper reports that “millions of poorer families and disabled people” will lose thousands of pounds a year in Reeves’ plans to “fill a new £14 billion black hole in Britain’s finances” by slashing benefits and other government spending. The Metro says the cuts have stoked outrage among Labour MPs and charities, reporting that the plans were “denounced as a return to austerity”.
The Daily Mirror headlines on accusations that Reeves’ plans amount to “balancing the books on the backs of the poor”. Noting her benefit reductions add up to a total of £4.8 billion of the £14 billion in cuts, the paper carries highly critical comments from a major union boss over her plans. Paul Nowak, from the Trades Union Congress, accused the chancellor of making the “wrong call” to cut sickness and disability assistance, rather than hiking taxes on the wealthiest people.
The major cuts to the welfare state also feature in the Guardian’s lead story, which notes that her plans could cost three million households around £1,720 a year. The paper also reports that ministers are “bracing themselves” for a rebellion among Labour MPs, including speculation up to 36 backbenchers may refuse to back the government. Senior charity boss Paul Kissack, head of the Joseph Rowntree Foundation, told the Guardian the government must do more to protect the poorest and most vulnerable people.
Beyond welfare cuts, according to the Financial Times’ lead story, warnings have been issued to the chancellor that she could be obliged to raise taxes in the Autumn Budget. Office for Budget Responsibilidy (OBR) forecasters told Reeves that the £9.9bn “headroom” the government has against the Treasury’s fiscal rules – that spending must be funded by taxes not borrowing by 2029/30 – may be wiped out in a global trade war. Paul Johnson, an economist at the Institute for Fiscal Studies, tells the paper that Reeves having such strict fiscal rules “leaves you at the mercy of events”.
The threat of a full-blown trade war being triggered by Donald Trump is the focus of the Times’ reporting. The paper drills down on the OBR’s warning of the impact tariffs could have, should the US president go through with his threat to introduce import levies on British goods. Trump reportedly plans to introduce tariffs of up to 20% on UK exports to the US on Tuesday, a day which he has called “liberation day”. The Times notes the OBR said this level of tariff would wipe 0.6% off economic growth by 2026, rising to 1% if the UK retaliated with its own tariffs on US goods.
The Daily Telegraph also reports on the prospect of looming tax hikes, noting the OBR has warned Reeves faces a 50/50 chance of having to raise more revenue to meet her fiscal rules. The paper says the OBR also described government’s employment rights bill as a threat to growth, productivity and jobs – which raise the likelihood of tax rises.
The Daily Express keeps it simple on its front page, featuring a picture of “reckless Rachel” announcing her plans at the despatch box in the House of Commons, next to a full-page headline accusing her of recklessness and damaging economic growth. The paper reports that the UK’s tax burden is predicted to hit record levels, blaming the chancellor’s polices for the negative economic growth forecasts.
The chancellor is “deluded” says the Daily Mail in its headline, accusing her of failing to restore economic stability in Labour’s mission to deliver a “decade of national renewal”. The paper characterises it as a “humiliating” day for Reeves, noting the £14 billion in emergency cuts were brought in to avoid breaking fiscal rules only written five months ago.
The Sun breaks from the wall-to-wall economic coverage to report that the Prince of Wales will appear on ITV’s hit farming programme Clarkson’s Farm. The paper reports Prince William will appear on Jeremy Clarkson’s show after meeting his co-star, Kaleb Cooper, at a mental health event on Wednesday. The Sun says William told Cooper that his son George loves the series, but wants him to swear less.
The ever-present threat of Seagull faeces or food theft is the lead story in the Daily Star. Joking that “Reeves is not the only pest dumping on Brits from a great height”, the paper reports that breeding seabirds are “about to make our lives hell too”. The Star says that experts have warned “psycho” seagull season is set to begin, which means they will be more aggressive while nesting.
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