Rachel Reeves leaves 11 Downing Street to deliver the spring statement.

Rachel Reeves insisted her plans for the UK economy are “working” despite having to make billions of pounds of public spending cuts to plug a massive hole in the nation’s finances.

The Office for Budget Responsibility said economic growth will be just 1% this year - half what they forecast six months ago at the Budget.

Delivering her Spring Statement, the chancellor also confirmed that reforms to the welfare system will not save as much money as the government had hoped - forcing her to make a further £500m of cuts.

However, Reeves was able to announce that the OBR has upgraded its forecasts for economic growth for the next five years, hitting 1.8% in 2029.

And although inflation is now expected to average 3.2% this year - up from the 2.6% the OBR said last autumn - it will fall to 2.1% in 2026.

The OBR also said that households........

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