0:00
in the Autumn I set out our new fiscal
0:02
rules that would guide this government
0:04
these fiscal rules are
0:06
non-negotiable they are the embodiment
0:08
of this government's unwavering
0:10
commitment to bring stability to our
0:12
economy and to ensure security for
0:16
people because the British people have
0:19
seen what happens when a government
0:24
means don't call it a budget but Rachel
0:27
Reeves has just delivered her spring
0:29
statement to the house of Commons the
0:30
government doesn't want to think about
0:31
this as a mini budget an emergency
0:32
budget or even a major fiscal statement
0:35
but there have been some quite major
0:37
policy and spending announcements I'm
0:39
here at the bank of England in the heart
0:41
of the city of London essentially
0:43
because what was announced by Rachel
0:45
Reeves in Westminster earlier today is
0:47
going to have major implications for
0:49
monetary policy and business confidence
0:51
moving forward and reev started with a
0:54
pretty familiar government refrain that
0:56
was to blame Liz trust for her now lack
0:59
of fiscal maneuvers so if you remember
1:01
back to 2022 the pretty disastrous Liz
1:04
trust mini budget wrough havoc on the
1:07
market and it means that the labor
1:10
government now have strict fiscal rules
1:12
governing their spending Reeves is
1:14
pledging to balance the budget by the
1:16
20293 tax year that means that all
1:19
day-to-day government spending is going
1:20
to be funded directly from tax receipts
1:23
and the office for Budget responsibility
1:25
that's the independent budget Watchdog
1:28
has halfed the UK 2025 growth estimate
1:30
from 2% down just to 1% and that gives
1:33
Reeves a lot less room for maneuver now
1:36
she's insisted both in pre- briefings
1:38
before the statement and actually at the
1:40
start of the statement as well that the
1:41
world has changed since the last time
1:44
she gave a budget back in October that
1:46
much is true because back in October
1:48
Donald Trump wasn't president the global
1:50
trade War hadn't started and the global
1:52
economy looked a lot different but it
1:54
needs to be pointed out she only left
1:56
herself with 10 billion in fiscal head
2:00
that's significant because with new OB
2:03
downgrades she's now left having to plug
2:05
a more than4 billion pound deficit she
2:08
says that she'll meet the government's
2:09
investment rule two years early with
2:11
debts coming down the next two years
2:14
that means that she should have an extra
2:16
15.1 billion pound to play with by the
2:18
end of this Parliament she's also
2:19
announced a big Crackdown on tax evasion
2:23
so she hopes that by the government and
2:25
so the M Ministry of Justice charging
2:27
20% more tax avoiding Criminal
2:30
that they can recoup 7.5 billion in
2:33
otherwise lost tax revenue and as part
2:35
of plans to boost defense spending to
2:37
2.5% of GDP Reeves has announced a 2.2
2:41
billion pound hike in defense spending
2:43
in the next financial year arguably the
2:45
most politically contentious part of the
2:47
statement that's welfare and there was a
2:48
surprise here because Reeves has cut 50%
2:52
of the Universal Credit Health allowance
2:54
she says this is crucial and it will cut
2:57
£ 4.8 billion pound from the welfare
3:00
budget she's pushing also for a Leena
3:03
state with 15% cuts to the running cost
3:05
of government that should save 2 billion
3:08
pounds and in another key priority for
3:10
the government she's pledged to hit 2%
3:12
inflation by 2027 on the opposition
3:14
benches however the shadow Chancellor
3:16
Mel stride has been pretty scathing he
3:18
says that the announcement represents a
3:20
smoke screen by the government so he
3:22
slammed the chancellor for being
3:24
Reckless back in the October budget
3:26
leaving herself then with just 9.9
3:28
billion pound in F School headro most
3:30
critically of all he's added that she
3:33
borrowed and spent and taxed like it was
3:35
the 1970s this will be the last thing
3:38
that the new starm government will want
3:40
anyone to think that they're doing so
3:42
all in all the statement shed some very
3:44
interesting light on the political
3:46
Capital that the government feel like
3:47
they have to burn and their spending
3:49
priorities for the rest of the
3:50
parliament now the statement obviously
3:52
isn't a full budget but it does cast
3:54
some very interesting light on the
3:55
government's spending priorities moving
3:57
forward and there's so much more detail
3:59
that we have over at cm.com on our
4:01
socials and on our YouTube so go and
