Spring Statement 2025: What to expect from Rachel Reeves as inflation eases amid gloomy outlook

Chancellor Rachel Reeves is delivering her Spring Statement today. She'll acknowledge the government needs to go “further and faster to kickstart growth”.

Major cost-cutting measures are expected to help balance the nation’s books without hiking taxes. She's also expected to stick to her rule of meeting day-to-day spending through tax receipts, rather than extra borrowing. She's likely blame global economic headwinds for the state of the economy.

Read Spring Statement 2025: What do small businesses want from Rachel Reeves?

In other grim news for the country, the OBR is expected to slash its forecast for economic growth.

That would follow similar recent revisions by the Bank of England and the Organisation for Economic Co- operation and Development.

However, there was potentially some good news for the chancellor this morning. UK inflation eased by more than expected last month, driven by the price of clothing. CPI inflation fell to 2.8 per cent in February, from 3 per cent in January.

Most analysts had been expecting CPI inflation to come in at 2.9 per cent last month. Unfortunately, some experts are saying this morning that the inflation rate is a consequence of a slowing economy.

Bellway Homes demand “healthy”

In other news, housebuilder Bellway says it's building more homes amid “healthy” demand from buyers. Shares in the company lifted yesterday after it told shareholders profits have increased - because it completed more houses.

The company is among developers to have been boosted by easing mortgage rates and the Labour Government’s ambition to build 1.5 million homes.

The London housing market isn't having such a good time though. A stamp duty “hangover” has struck the capital, with demand from home buyers falling back. Zoopla estimates that around eight in 10 first-time buyers in London will pay stamp duty from April 2025, compared with less than half under current thresholds.

Stamp duty changes

Among other changes, from April, the “nil-rate” stamp duty threshold for first-time buyers is set to reduce from £425,000 to £300,000.

And good news in the north west - Administrators have saved 230 of 251 jobs at national soft furnishings retailer Julian Charles. FTS Recovery were immediately able to complete a sale to Great Bedding Company Limited. The jobs were spread across more than 25 trading sites, and separate concession sites.