On Tuesday, 26th March 2025, Chancellor of the Exchequer Rachel Reeves delivered a Spring Statement that outlined how, since the general election and October 2024 budget, the UK Labour Government has restored economic stability to the nation’s finances.
We are delivering on our manifesto commitments: to bring real change, provide security for working people, and usher in a decade of national renewal.
Without economic stability, working people pay the price, with higher mortgages and inflation out of control. That is what we saw with Liz Truss and the Conservatives’ disastrous mini-budget.
Labour has begun the important work of stabilising the economy. Interest rates have been cut three times. NHS waiting lists down in both England and Wales. We have increased the National Living Wage and national Minimum Wage to give 3 million people across the UK and up to 150,000 full workers in Wales, a pay rise. This is just the beginning.
We’re on track to meet our fiscal targets two years ahead of schedule, bringing much-needed security to households across the UK.
The Chancellor confirmed that no new tax increases will be imposed as a result of the Statement, as promised in the Autumn budget. We are committed to cracking down on tax evasion, raising an additional £1 billion. We consider that we can recover the gap between tax that should be paid and what is actually paid, of £7.5 billion. When working people are still struggling with the cost-of-living, it cannot be right that others are still evading and avoiding what they rightly owe in tax.
The Labour Party is the party of work. The clue is in our name. After the general election we inherited a broken Tory social security system where 1 in 8 young people are not in employment, education or training. This is why we are reforming the welfare system to support those who can work whilst protecting those who cannot. The current system is unsustainable, indefensible and unfair for those within it.
£1.4 billion will be invested in programmes that assist people in finding work. This is one of the largest-ever investments to increase opportunities to work for sick and disabled people, guaranteeing high-quality, tailored support to get people on a pathway to work.
We have already begun the difficult task of reforming the British state. By driving efficiency and productivity across government, we are on course to reduce the cost of running the state by 15% by the end of the decade.
We are also focused on long-term investment, with £3.25 billion allocated through the new Transformation Fund to support the vital reforms needed in our public services.
Unlike the Conservative Party, we are increasing capital spending, rather than cutting it, to drive growth and improve the infrastructure of our schools, hospitals, and transport systems. We are protecting vital services, including a real-terms increase in day-to-day spending for every year of the economic forecast.
The security of our nation should be the number one priority of any government, which is why this UK Labour Government has committed an additional £2.2 billion investment in defence sending, which will ensure the safety of our country whilst also boosting economic growth.
With £400 million ring-fenced for UK Defence Innovation and a commitment to invest 10% of defence expenditure on novel technologies such as AI and drones, this investment will benefit advanced manufacturing sectors in Wales, such as those in Newport. The new Defence Industrial Strategy will drive forward innovation, creating jobs and enhancing security.
Together, with Labour Governments working in partnership at each end of the M4, we are delivering for the people of Wales for the first time in a generation. The Welsh Government received an historic £21 billion settlement in the UK Government Budget last autumn. An additional £16 million follows the Spring Statement. The additional money for Welsh Government is helping drive down NHS waiting lists, falling for the second consecutive month, and improving public services across Wales.
From increased support for Welsh steelworkers to investment in the defence sector, this partnership ensures that Wales will benefit from both economic growth and increased funding for our defence manufacturing sector. Through initiatives like our Investment Zones and Freeports in Wales, we are creating thousands of well-paying, good jobs and boosting opportunities across the nation.
This UK Labour Government is committed to securing Britain’s future through growth and securing economic stability. With economic growth returning to Wales and the whole of the United Kingdom, a more resilient defence industry, and support for working people, we are delivering the change we promised.
The progress we have made is just the beginning. In partnership with the Welsh Labour Government in the Senedd, we are building a better future for all.