Rachel Reeves Harmful Austerity Spring Budget Reviewed

Chancellor Rachel Reeves's Spring Budget is a devastating assault on the most vulnerable in our society, masquerading as fiscal prudence. Under the guise of economic necessity, this budget inflicts deep cuts to welfare and public services, disproportionately harming those already struggling to make ends meet.​

Welfare Cuts: A Direct Attack on the Poor

The budget announces welfare cuts totaling £4.8 billion, a move that will strip essential support from millions. Official figures reveal that three million households could lose £1,720 annually in benefits. The Office for Budget Responsibility (OBR) estimates that these cuts will push an additional 250,000 people, including 50,000 children, into relative poverty by 2029-30. This is not just a statistic; it's a catastrophic blow to families who rely on these benefits for their basic survival.

Freezing Tax Thresholds: Stealth Taxation

By freezing personal allowance and income tax thresholds until 2028, the government is effectively implementing a stealth tax. As wages rise with inflation, more individuals will be dragged into higher tax brackets, reducing their disposable income. This fiscal drag disproportionately affects low and middle-income earners, further exacerbating income inequality. 

Public Service Austerity: Eroding Essential Services

The budget outlines a £14 billion reduction in public spending, with significant cuts to government departments such as the Home Office and Ministry of Justice. These cuts threaten to undermine essential public services, compromising safety, justice, and community well-being. The creation of a £3.25 billion transformation fund for technology investments and government redundancies does little to mitigate the immediate impact on public service delivery. 

Economic Growth Stifled: A Bleak Future

The OBR has downgraded the UK's growth forecast for 2025 from 2% to a mere 1%. This sluggish growth, coupled with the government's austerity measures, paints a bleak picture for the nation's economic future. Rather than investing in initiatives that could stimulate growth and innovation, the government chooses to tighten the purse strings, stifling potential and prosperity.​

Conclusion: A Call to Action

Chancellor Reeves's Spring Budget is a regressive step that prioritizes fiscal targets over human lives. It is imperative that we, as a society, reject this assault on our most vulnerable and demand policies that promote equity, support, and genuine economic growth. The government must be held accountable for choosing austerity over compassion, and for betraying the very citizens it purports to serve.