Tag: UK Government

‘CATASTROPHIC’: Spring Statement welfare cuts will drive 250,000 more people into poverty

Chancellor ‘delivers security and national renewal in a new era of global change’

  • Chancellor vows to bring about “new era of security and national renewal” as she delivered a Spring Statement to kickstart economic growth, protect working people and keep Britain safe.
  • People to be on average £500 a year better off by the end of this parliament compared to under the previous government, putting more money in people’s pockets.
  • OBR forecast concludes government’s landmark planning reforms will result in a £6.8 billion boost to the economy and housebuilding at its highest level in over 40 years by 2029-30
  • Growth at the heart of Plan for Change as £13 billion of additional capital spend allocated alongside £2.2 billion defence funding boost next year.

THE Labour government said people will be on average £500 better off from 2029, relative to OBR’s autumn forecast, helping to deliver the Plan for Change as the Chancellor yesterday (Wednesday 26 March) announced a Spring Statement to grasp the opportunities in a changing world.

THEY WON’T. From November 2026, 370,000 people who already get PIP will lose it and another 430, 000 who would qualify now no longer will. These people will lose £4500 a year each. And 150,000 carers who look after them will no longer receive their £83.30 a week Carer’s Allowance.

The OBR has also concluded that the government’s landmark planning reforms will result in UK housebuilding reaching its highest level in over 40 years, bringing the UK one step closer to its Plan for Change mission to build 1.5 million homes.

The government says economy will be 0.2% larger in 2029-30 because of the reforms – worth around £6.8 billion in today’s money – growing to 0.4% over the next ten years. This represents the biggest positive growth effect it has ever forecasted for a policy that comes at zero-cost to taxpayers. The reforms will secure over 170,000 new homes for hard working families and leave borrowing £3.4 billion lower in 2029-30.

The Chancellor also set out how the government is protecting national security and maximising the growth potential of the UK defence sector by confirming a £2.2 billion increase in the defence budget in 2025-26 while ensuring UK defence is on the cutting-edge of technology and innovation.

But growth is still not where it should be, so at this Spring Statement, this government has gone ‘further and faster’ to kickstart growth by training up to 60,000 young people to get Britain building again; increasing capital investment by £13 billion over this parliament; and fixing public services by tearing out waste from its roots.

Growth

Kickstarting economic growth is the number one mission of this government, putting more money in people’s pockets. The government has already made considerable progress; supporting a third runway at Heathrow; revitalising the Oxford Cambridge Growth Corridor, launching the National Wealth Fund and making the right choices on public investment to drive growth across the UK.

The actions of this government across the Autumn Budget and Spring Statement, if sustained, lead to a 0.6% rise in the level of real GDP by 2034-35, signalling the government’s growth plan is working.

The OBR concluded that the stability rule is met by £9.9 billion and the investment rule is met by £15.1 billion. Both rules are met two years early, meaning from 2027-28 the government is only borrowing for investment and net financial debt is falling.

The government is not satisfied with short-term growth figures, and is going further and faster today to improve this:

  • To go further and faster to get Britain building, the Chancellor has today announced a further £13 billion of capital investment over the Parliament to go further on growth, on top of the £100 billion uplift announced at Autumn Budget. This will deliver the projects needed to catalyse private investment, boost growth and drive forward the UK’s modern industrial strategy – unlocking the potential of the Oxford Cambridge Growth Corridor which could add up to £78 billion to the UK economy by 2035.
  • Taken together, this greater capital investment more than offsets the modest savings on day to day spending and means the total departmental spending will increase over the next five years, when compared with plans in the Autumn.
  • Over this Parliament, the government is funding a £625 million package to boost skills in the construction sector, which is expected to provide up to 60,000 more skilled construction workers to support the government’s plans to deliver 1.5 million homes in England over the parliament and progress vital infrastructure projects.
  • As part of this, the government is providing further support to scale up existing construction skills pathway over this Parliament through £100 million for 35,000 additional training places in construction-focused Skills Bootcamps, supporting trainees, ‘returners’, and existing employees to succeed in the sector. Building on the £40 million investment in the new Growth and Skills Levy at Autumn Budget 2024, the government is also providing a further £40 million to support up to 10,000 more young people to access new construction Foundation Apprenticeships, which will provide a key entry route into a thriving industry.
  • The government is ensuring there are enough skilled construction workers in the system, with £100 million to deliver 10 Technical Excellence Colleges specialised in construction across every region in England, and £165 million to increase funding for training providers delivering construction courses for 16-19-year-olds and adults.
  • The government is committed to supporting employers to unlock further investment in training to deliver more skilled construction workers, and is providing £100 million, alongside a £32 million contribution from the Construction Industry Training Board to deliver up to 40,000 industry placements in construction each year.
  • Supported by the construction skills package, the government confirmed this week that there will be a £2 billion injection of new grant funding to deliver up to 18,000 new social and affordable homes. The new funding will only support developments on sites that will deliver in this Parliament, getting spades in the ground quickly to build homes in places such as Manchester and Liverpool.

Defence

The world is changing before our eyes, reshaped by global instability, including Russian aggression in Ukraine. Europe is facing a once-in-a-generation moment for its collective security, with conflicts overseas undermining security and prosperity at home.

A month ago, the PM announced the biggest sustained increase in defence spending since the Cold War as a result of the changing global picture, now reaching 2.5% of GDP by April 2027, and with an ambition to reach 3% in the next Parliament subject to economic and fiscal conditions.

We are going further and faster to protect our national security and maximise the economic growth potential of the UK defence sector:

  • Increasing the defence budget by £2.2 billion in 2025-26, taking additional spending on defence to over £5 billion since the Autumn Budget.
  • This raises spending on defence to 2.36% next year and will be invested in fitting Royal Navy ships with Directed Energy Weapons five years earlier than planned, providing better homes for military families and modernising His Majesty’s Naval Base Portsmouth.
  • Setting a minimum 10 percent ringfence for equipment spending on emerging technologies like drones and autonomous systems, dual-use technology, and AI-powered capabilities, so that British troops have the tools they need to fight and win in modern warfare.
  • Getting this new tech into the hands of our armed forces quicker by cutting away bureaucracy, with a new UK Defence Innovation unit within the Ministry of Defence spearheading efforts to identify promising technology and ensure these get to the frontline at speed, while also bolstering the UK tech sector and crowding in private investment.
  • Creating bespoke procurement processes for different types of military equipment, learning lessons from our rapid support for Ukraine to drive faster timescale targets for operationalising new tanks, aircraft and other essential tools for modern warfare.
  • This government is determined to transform the defence sector into an engine for growth by focusing this investment on where it boosts the productive capacity of the economy such as investment in innovation and novel technologies. As a result of the increase in defence spending to 2.5%, the government estimates this could lead to around 0.3% higher GDP in the long run, equivalent to around £11 billion of GDP in today’s money.
  • The government’s investment in defence will also support its number one mission to deliver economic growth. UK citizens will be protected from threats at home whilst creating a stable environment in which businesses can thrive, and supporting highly skilled jobs and apprenticeships across the whole of the UK.

Reform

The government is determined to make the public sector more productive and to improve services for working people. But the changing world means we need to go further and faster to ensure we can deliver the public services that working people care most about.

The government has shown its commitment to taking the difficult decisions required to drive efficiencies and reform the state – including announcing that the world’s largest quango, NHS England, will be brought back into the Department for Health and Social Care, reducing bureaucratic inefficiencies and duplication; and driving out wasteful government spend through cancelling thousands of government credit cards.

Getting more people into jobs is also central to the government’s growth mission. This broken welfare system that is letting people down by asking them to prove what they can’t do, rather than focusing on what they could do with the right support – trapping people due to fear of trying work, lack of support and poor financial incentives.

The social security system will always protect those who can never work, that is why this government is proposing an additional premium that will safeguard their incomes. And will end reassessments for people with the most severe, life-long conditions to give them dignity and security.

Helping more people into work is a central aim of these reforms and which is why the government is tackling incentives to be inactive by abolishing the WCA, rebalancing Universal Credit, and investing more into employment support.

We will always support those with long term health conditions through the Personal Independence Payment, which will remain an important non-means tested benefit for disabled people and people with long term health conditions. But these reforms will make the system more targeted and sustainable to ensure the safety net is there for those who need it most.

The OBR have now set out their final assessment of costings and confirmed this welfare package will reduce welfare spending by £4.8 billion in 2029-/30.

The government will modernise the Civil Service into a more productive and agile organisation that can effectively deliver the Plan for Change, underpinned by a digital revolution, while cancelling thousands of government procurement cards.

Today, the Chancellor has gone further:

  • The Chancellor has confirmed the creation of a £3.25 billion Transformation Fund to support the fundamental reform of public services, seize the opportunities of digital technology and Artificial Intelligence (AI), and transform frontline delivery to release savings for taxpayers over the long-term.
  • The Fund will invest in vital public services and accelerate the modernisation of the state by taking the next step to reform the children’s social care system through an additional £25 million for the fostering system. This will include funding the recruitment of a further 400 new fostering households, providing children with stability and addressing cost pressures on local government.
  • The fund will also support the managing offenders in the community, by providing £8 million for new technology so probation officers can focus on reducing reoffending, rather than filling out forms.
  • In addition, it will provide £42 million for three pioneering DSIT-led Frontier AI Exemplars. These Exemplars will test and deploy AI applications to make government operations more efficient and effective and improve outcomes for citizens by reducing unnecessary bureaucracy.
  • To create an agile and productive state we are also providing £150 million for government employee exit schemes. This will support a leaner and more efficient Civil Service, helping to reduce administration costs by 15% by the end of the decade.
    The Chancellor also announced a package of measures to close the tax gap, raising £1 billion per year by 2029-30. The UK tax gap was estimated to be around £40 billion in 2022-23.
  • The Spring Statement earmarks around £80 million in new money for third party debt collectors to bring in £1.3 billion over the next five years – a return of around £16 for every pound spent for UK public services and investment projects. HMRC will also receive £4 million in new funding to pilot a new test and learn programme with the private sector to improve the tax collection agency’s approach to recouping older unpaid tax debt. Ministers will decide whether to proceed with a larger exercise later this year based on the results of this test.
  • An additional 600 staff will also be recruited into HMRC’s debt management teams. This means that for every £1 spent on these staff, over £13 of debt is expected to be recovered. The staff will work with the private sector to make collecting tax debt more efficient including through automating admin processes.
  • The Spring Statement also announces £100 million in new funding for HMRC to recruit a further 500 compliance officers from April 2025. This will raise £241 million in unpaid tax over the next five years.
  • Late payment penalties for VAT and Making Tax Digital for income tax Self Assessment will increase to incentivise taxpayers to pay on time. This will be from 2% to 3% at 15 days, 2% to 3% at 30 days, and 4% to 10% from day 31. This will take effect from April 2025.
  • As announced in the autumn, Making Tax Digital for income tax Self Assessment will be extended to sole traders and landlords with income over £20,000. The Spring Statement confirms that this additional group will join Making Tax Digital from April 2028. This will build on the existing plan which will see sole traders and landlords with income above £50,000 joining from April 2026, and those with income above £30,000 joining from April 2027. Around 4 million businesses have an income below the £20,000 threshold.

Looking Forward

This Spring Statement builds on the Autumn Budget and the decisions taken since required to deliver stability to the British economy and kickstart economic growth.

The government will set out its plans for spending and key public sector reforms at the Spending Review which will conclude on 11 June 2025.

This will not be a business-as-usual Spending Review. The government has fundamentally reformed the process to make it zero-based, collaborative, and data-led, in order to ensure a laser-like focus on the biggest opportunities to rewire the state and deliver the Plan for Change.

At the Spending Review, the Budget in the autumn and across the Parliament, the government will continue to prioritise growing the economy to deliver change.

RESPONSES:

UK spending cuts ‘risk harm to most vulnerable’

Finance Secretary responds to Spring Statement

Spending cuts announced by the Chancellor risk harming some of the most vulnerable people in society, Finance Secretary Shona Robison has said.

Responding to the Spring Statement, Ms Robison said: “Today’s statement from the Chancellor will see austerity cuts being imposed on some of the most vulnerable people in our society. The UK Government appears to be trying to balance its books on the backs of disabled people.

“Not content with these cuts, the UK Government is still expected to short-change Scotland’s public services on additional employer National Insurance costs to the tune of hundreds of millions of pounds. This will be felt in public services that people rely on up and down the country – services such as our NHS, GPs, dentists, social care providers, and universities.

“The UK Government’s choice to increase defence investment is welcome, but its choices to shortchange public services and deliver austerity cuts to some of the most vulnerable are deplorable.”

TRUSSELL:

Trussell responds to ‘catastrophic’ Spring Statement

Cara Hilton, Senior Policy Manager at Trussell in Scotland, said: “Today’s announcement has incredibly worrying implications for disabled people in Scotland.

“The insistence by the Treasury on driving through record cuts to disabled people’s social security to balance the books is both shocking and appalling. People at food banks are telling us they are terrified how they’ll survive.

“These brutal cuts to already precarious incomes won’t help more disabled people find work, but they will risk forcing more people to skip meals and turn to food banks to get by.

“Cuts come at a cost. Driving up hunger and hardship means more spending on already struggling public services, with increased hospital and GP visits a very likely outcome of these actions.

“Disabled people are already three times more likely to face hunger, and over three quarters of people in receipt of Universal Credit and disability benefits are already struggling to afford the essentials like food. This will only get worse.

“These cruel cuts are out of touch with what voters want from this government. The government says people voted for change in Westminster, but we know that seven in ten voters across political parties agree the social security for disabled people should at least be enough to cover essential living costs. This is a change for the worse, and it is disabled people who will pay the price.”

David, 46, has a bone disease and is terrified by the prospect of cuts to his disability benefits. He has recently been forced to turn to a Trussell food bank for support.

He said: “I am terrified now that the Chancellor has confirmed that my disability benefits will be cut. The bone tumours in my hips cause me pain everyday and force me to use crutches, and in the cold weather my symptoms worsen but I already can’t afford to put the heating on.

” I don’t know how I’ll survive. It’s not my fault I’m disabled, and I shouldn’t be punished for it.

“Life costs more if you’re disabled. Things like specialist equipment and travel to healthcare appointments all add up. PIP – which the government is brutally cutting – is there to account for these extra costs. It is not a luxury, and I shouldn’t need to use a food bank or turn to charities like Trussell for support.

“Cutting my benefits won’t get me back to work – it will just push me deeper into poverty.”

JOSEPH ROWNTREE FOUNDATION

“The Chancellor said today that she would not do anything to put household finances in danger Yet the government’s own assessment shows their cuts to health related benefits risk pushing 250,000 people into poverty, including 50,000 children.

“Their assessment also found:

  • 800,000 will lose PIP according to the OBR
  • 3m will lose money from changes to the main health element of UC, £500 a year for existing claimants, and £3000 for new claimants
  • £500m will come out of the carers benefits bill as 150,000 lose carers allowance or UC care element.

“The Chancellor said the world has changed, and today’s announcements places the burden of that changing world on the shoulders of those least able to bear the load. These cuts will harm people, deepening the hardship they already face.”

CHILD POVERTY ACTION GROUP:

Responding to today’s Spring Statement, chief executive of Child Poverty Action Group Alison Garnham said: “Stealth social security cuts bring neither stability nor security to struggling families and will push child poverty even higher.

“Growth and better living standards are not achieved by taking money from families with the least.

“Government must invest in social security support – not cut it – for the most vulnerable, or risk being remembered as the Labour administration under whose watch child poverty continued to rise.”

CARERS UK:

STUC:

INDEPENDENT ALLIANCE MPs:

KIM JOHNSON MP:

OCTOPUS ENERGY:

Greg Jackson, CEO of Octopus Energy, said:  “It’s good to see the focus on planning and other reforms that can unlock investment to help make Britain more productive and drive growth.

“We were also pleased to see the receipts from the Government’s sale of Bulb to Octopus funding 36,000 homes for armed forces families. It’s a sign of how business and Government can work together for the good of the country.”

FRONT PAGES:

MOMENTUM:

NEW ECONOMICS FOUNDATION:

JEREMY CORBYN:

PRIME MINISTER KEIR STARMER:

THE NATIONAL:

TRADES UNION CONGRESS (TUC):

Responding to today’s (Wednesday) Spring Statement, TUC General Secretary Paul Nowak said: “Labour inherited a toxic economic legacy from the Conservatives. But at the Budget the Chancellor took the right call to invest in repairing our public services and infrastructure. 

“To rebuild Britain this approach must continue long-term. In the face of strong global headwinds, we need to keep building stronger foundations at home. That must include protecting the most vulnerable. 

“As the last 14 years have shown us – you cannot cut your way to growth. UK taxes are low as a share of GDP. Those with the broadest shoulders must continue to contribute more through a fairer tax system.

“And the Tories’ botched Brexit deal must be improved to boost growth and trade.”

On the government’s social security reforms, Paul said: “Ministers need to rethink their plans. Decisions that affect millions of people’s lives must be made with care – not as a last-minute response to changed fiscal forecasts. 

“These changes mean many disabled people – whether they are in work or not – will be pushed into hardship. 

“And removing support could even make it harder for some people to stay in their jobs.

“Disabled people need timely access to high quality healthcare, and accessible jobs – particularly in the towns and communities where there are fewest opportunities.”

On the public sector workforce, Paul added: “Public sector workers are key deliverers of national renewal. 

“But after 14 years of Tory chaos and ruin, many feel burnt out and demoralised.

“It’s vital the government invests in these workers and recognises the key role they play in improving the services we all rely on.

“Any approach to transforming our public services must include clear workforce plans for every part of our public sector, developed in partnership with staff and unions.”

On the OBR’s growth forecasts, Paul said: “It is time to review both the role of the OBR and how it models the long-term impacts of public investment. Short-term changes in forecasts should not be driving long-term government decision-making.”

UNITE THE UNION:

UK FINANCE:

David Postings, Chief Executive Officer, UK Finance said: “The chancellor’s Spring Statement focused on stability and growth in the UK. We welcome the government’s continued commitment to growing the economy and the financial services sector is committed to playing its part in support.

“Building on recent positive regulatory reform plans, we now look forward to the upcoming Industrial Strategy, which will be key to unlocking further investment and delivering growth through various sectors, including financial services.”

MENTAL HEALTH FOUNDATION:

LLOYDS BANKING GROUP:

Charlie Nunn, Chief Executive Officer, Lloyds Banking Group said: “A safe and lasting home is the foundation for good lives and livelihoods, and we welcome this boost to building much-needed social and affordable homes.

“As the UK’s biggest commercial supporter of social housing, we’re working across the private, public and community sectors to help increase provision of good quality, genuinely affordable housing for those in need.”

UNITE HOSPITALITY:

DAILY MIRROR:

POVERTY ALLIANCE:

Responding to the Spring Statement, Poverty Alliance chief executive Peter Kelly said: “People in the UK voted for change at the last election because they were desperate for a government that delivers a just and compassionate country. Today’s announcements undermine that ambition.

“It is completely unjust to, once again, balance the books on the backs of the those on the lowest incomes. Today’s statement layered additional cuts to our social security system on top of those announced last week. That will have a devastating impact for households across the country.

“The Government’s own analysis shows that these changes will push at least 250,000 people, including 50,000 children into poverty, undermining the forthcoming child poverty strategy before it’s even published.

“These cuts will push people into debt and destitution. They will continue the need for food banks. They will stop people heating their homes, or charging essential medical and support equipment.

“People know that there is no justification for these cuts. It does not have to be like this. The Chancellor could scrap her self-imposed fiscal rules or use our taxation system to raise the revenue needed for the better future we all want to see.

“The UK Government is re-running a failed experiment – austerity will not deliver economic growth. And it certainly won’t deliver a just and compassionate society.”

SCOTTISH HUMAN RIGHTS COMMISSION:

Deep concern about impact of UK Government’s Spring Statement

The Scottish Human Rights Commission (SHRC) is deeply concerned about the impact of announcements on the future of the UK welfare system in the UK Government’s Spring Statement, especially for disabled people and their families and communities. 

Plans to cut the health element of Universal Credit will have a direct effect on the human rights of those disabled people in Scotland who are unable to work. Although payments to support people with the additional costs of disability are devolved in Scotland, the UK Government’s proposals will have negative consequences for the Scottish Budget.

Severe economic hardship

Earlier this month, the UN Committee on Economic, Social and Cultural Rights, which holds governments around the world to account for their record on human rights, warned that changes to the UK welfare system introduced since 2012 have “eroded the rights to social security and to an adequate standard of living, disproportionally affecting persons with disabilities, low-income families and workers in precarious employment” and warned that these changes have resulted in “severe economic hardship”.

Last year, the UN Committee on the Rights of Persons with Disabilities reiterated its position that the UK welfare system is leading to ‘grave and systematic’ violations of disabled people’s rights. Over the past week many disabled people, Disabled People’s Organisations and civil society organisations have expressed shock and fear about what further changes to the system could mean for people.

Professor Angela O’Hagan, Chair of the SHRC, says: “With these announcements, the UK Government is not only disregarding the expert findings and recommendations of human rights bodies, but actively pursuing regressive changes that further deteriorate the rights of disabled people in Scotland. 

“Indeed, these steps may potentially represent a breach of the UK’s obligations under international human rights law, particularly its duty to progressively realise the rights to social security, an adequate standard of living, and non-discrimination.

“Social security, an adequate standard of living, and non-discrimination are not optional benefits — they are binding human rights that the UK is required to respect, protect, and fulfil for everyone.

“These proposals fly in the face of both the letter and the spirit of the UK’s human rights obligations.”

VOLUNTEER SCOTLAND:

We share the concerns voiced by many third sector organisations regarding the Chancellor’s Spring Statement on Wednesday (writes Volunteer Sotland’s SARAH LATTO).

The significant cuts to health-related benefits have the potential to push more people into financial difficulty. This would create significant additional demand for third sector services and the volunteers that support them.

This comes at a time when the third sector is facing unprecedented pressures, and volunteer participation is in significant decline. Given the reported challenges many organisations are experiencing in recruiting new volunteers, this could add considerable pressure to existing volunteers who give their time to support people in crisis. This is not sustainable and could contribute to a further decline in volunteer participation.

Last week we published research showing that weekly participation in formal volunteering can lead to wellbeing benefits worth an estimated £1000 per person per year. 

This same research also found that the effect of volunteering on mental wellbeing for people with a disability or long-term health condition was seven times larger than for people without.

Despite these clear benefits, we are concerned that the announced reduction in welfare spend will prevent many people in receipt of benefits from pursuing volunteering.

Our ongoing research regarding the impact of the cost of living crisis on volunteering suggests that the capacity of many people to volunteer is increasingly diminished.

This is because of competing demands on their time and rising stress or anxiety regarding their finances. The planned changes to welfare spend will likely exacerbate this situation further, meaning many people in receipt of health-related benefits may feel unable to participate in an activity that is likely to improve their health and wellbeing.

As a result, we join many voices from the third sector in urging the Chancellor to rethink her plans around welfare spend.

FRASER OF ALLANDER INSTITUTE:

Spring Statement reaction: a second fiscal event of the year after all

The Chancellor may have tried to portray it otherwise, but her words in the Commons and the length of the scorecard of measures published by the OBR betray a different story: this really was a fiscal event, and a significant one at that.

It was also one where the forecasting process was nowhere as smooth as we hoped it might be given how much hay the Chancellor made out of strengthening the role of the OBR in the Autumn. Instead, we have seen a number of measures either uncertified or included only on a provisional basis, and with no time to evaluate their supply-side effects.

Given how long these measures have been speculated about, the last-minute tweaks and the scramble to announce further welfare reforms to make the sums add up to the £5bn in savings are pretty disheartening. It also makes us wonder about the reasons for announcing the headline amounts last week, before ultimate certification by the OBR.

It is not credible that the Chancellor or the Work and Pensions Secretary were not aware of the OBR’s concerns at the time of the announcement, and so we are left to wonder why figures that weren’t final were bandied about beforehand instead of being left for the appropriate fiscal event.

The underlying picture deteriorated significantly, and so spending cuts have filled the gap

As widely predicted, the Chancellor would have seen her fiscal rules broken had she not made significantly policy decisions, which collectively cut current spending by nearly £9 billion a year by 2029-30.

Chart: How the Chancellor restored her headroom

Source: OBR

Debt servicing costs are the main reason for the deterioration. Higher market interest rates raised the cost of servicing government by just over £10 billion by the end of the decade, more than wiping the starting headroom. Faced with this, and after staking her credibility on complying with the fiscal rules, the Chancellor decided to mostly lean on the spending side of the ledger to essentially get back to where she started.

This means a heavily backloaded set of policy decisions, with spending cuts coming from 2027-28 onwards. Changes to incapacity and disability benefits mostly affect spending from then on, by £1.8 billion in that year and rising to £4.6 billion by 2029-30.

Changes to the path of day-to-day departmental spending also rise to over £5 billion by 2029-30, although some of that is offset by specific investment programmes such as employment support, DWP delivery and HMRC compliance. On net, current departmental spending has been cut by £3.6 billion by 2029-30 relative to plans.

There have also been some increasing in the tax take. Much of it is from compliance activity and tax debt collection, although there are also additional council tax increases allowed in England and increases to passport and visa fees. Receipts are higher by £2.3 billion by 2029-30 because of measures.

But the Chancellor has had to run just to stand still. She is just as close to missing her fiscal rule as she was in October, and that leaves her exposed to any weaknesses or market movements between now and the Autumn. Things may well turn out for the better – but that is far from guaranteed, and it’s as close to a 50-50 bet as it gets.

Chart: Headroom against the main fiscal target since 2010

Source: OBR

What do the announcements mean for the Scottish Budget?

In the very short-term, there is a small amount of additional funding (£28 million) for the Scottish Government in 2025-26 due to a small increase in departmental spending at UK Government level.

Towards the end of the forecast, however, the picture is significantly more challenging in terms of what it means for Holyrood’s finances. The cuts in departmental budgets announced by the UK Government – even after accounting for some consequentials from employment support programmes and DWP delivery of welfare reforms – mean significant reductions in funding for the Scottish Government relative to what was previously included in the forecasts. Of particular significance are the £200 million and £435 million cuts in implied funding for the Scottish Budget in 2028-29 and 2029-30.

The current forecast points to the PIP reforms reducing the block grant adjustment for social security devolution by increasing amounts, from £177 million in 2027-28 to £455 million in 2029-30. This is in line with what we discussed in recent blogs.

Put together, and in the absence of any other changes, the Scottish Budget would be around £900 million worse off on the current side in 2029-30 than previously projected. On the other hand, some additional capital spending on areas which are devolved in Scotland – so aside from the defence spending increases – are expected to raise the Scottish Government’s capital budget by nearly £250 million by 2029-30 relative to current plans.

Chart: Effects of the Spring Statement measures on the Scottish Budget

Source: OBR

There’s still much we don’t know about the welfare reforms

One key policy change from last week’s Green Paper that the OBR have not been able to cost is the removal of the Work Capability Assessment (WCA) that currently determines whether a person is eligible for the Universal Credit (UC) health element. The UK Government have proposed that the PIP assessment will be used instead.

The OBR note the absence of key policy detail, including how entitlement will operate in Scotland where PIP is being phased out. They do state that they expect the policy to have a “material” fiscal impact, both on spending on UC but this could be offset by an increase in people claiming PIP. The labour market response of this (as with most of the other Green Paper policies) is also yet to be analysed by the OBR.

These changes will directly impact on people in Scotland as UC is a reserved policy, but as already noted, how this will happen given that PIP will soon not exist in Scotland, is unknown. The number of people impacted could be significant. The Scottish Government could mitigate this impact through its own social security top up powers but, as with the recently announced mitigation of the two-child limit in UC, would need to be able to find the money to do so from within its own budget.

But distributional analysis shows significant numbers of people will be worse off

Alongside the Spring Statement documents, the UK Government also update their distributional analysis (the differential impact of policies on poorer, middle, and higher income households). The impact of the Spring Statement, the policies from the Spring Statement are added to the policies from the Autumn Statement, making it difficult to isolate the impact of the Spring Statement, although the regressive nature of the welfare measures is clear to see: those in the lower half of the income distribution are facing most of the cuts.

Separately, the UK Government has produced a statement on the impact of the health and disability reforms.

This makes for sobering reading. The impact of changes to the eligibility for PIP will affect 800,000 people who will no longer be eligible for the Daily Living component. They note a further 150,000 people will not receive Carer’s Allowance of the UC Carer element as a result. These numbers are for England and Wales only given that disability benefits are devolved.

These results, on their own, will increase the number of working age people in poverty by 250,000 and 50,000 children. The UK Government are careful to say that these estimates do not account for any employment impact of those who lose benefits subsequently moving into work, and we will need to wait for the OBR to judge on the strength of these employment effects to understand the potential for offsetting of these numbers.

The reduction and or freezing of the UC health element will affect Scottish claimants as well as those in England and Wales. 2.25 million people who are current claimants will be affected by the freeze and 730,000 new claimants will receive the new lower rate and freeze. A further 50,000 working age people will be in poverty as a result of these changes.

There is as yet no analysis of the impact of the abolition of the Work Capability Assessment in UC, and the only impact that is shown is the reversal of a 2023 change to the descriptors in the Work Capability Assessment, which will not apply given the decision to abolish it.

We’ll have to wait until the OBR has been able to look at the whole policy package in aggregate before we understand the full scale of the impact both on the UK and Scotland. But it is clear from what we know so far that this is a package of measures that will raise poverty across the UK.

How does departmental spending look in historical context?

In October, the Chancellor announced significant increases in departmental spending. But we and others also noticed how frontloaded some of those announcements were.

This has been made even more so by the changes at this forecast to the latter years of the projections. Day-to-day departmental spending per person is now forecast to grow by a strong 3.4% in real terms in 2025-26, slowing to 1.5% in 2026-27 and remaining at 0.6% a year for the rest of the decade.

We’ll leave others to decide on words to characterise this path of spending. We’ll instead note that this leaves spending per person only 8% higher than it was in 2007-08. And as a share of national income – a better measure of affordability and of the Government’s prioritisation of the country’s resources – there is a slight increase in spending in the short-term. But day-to-day departmental spending then falls back by 0.4 percentage points by the end of the decade relative to its peak of 16.1 per cent of GDP in 2025-26 and 2026-27.

Chart: Resource departmental spending per person in real terms and as a share of GDP since 2007-08

Source: OBR, FAI analysis

RACHEL REEVES: We will deliver security for working people and renewal for Britain

BRITAIN’S POOREST COMMUNITIES FACE MORE HARDSHIP

  • Chancellor vows to bring about “security and national renewal” as she delivers a Spring Statement to kickstart economic growth, protect working people and keep our country safe.  
  • Reeves will warn that “we have to move quickly in a changing world”, unveiling a significant step towards spending 2.5% of GDP on defence with £2.2 billion funding boost next year.  
  • Growth and national security at heart of Plan for Change as funding invested in cutting-edge weapons and better homes for thousands of military families – paid for by reductions to international aid budget and from the Treasury reserve.  

The Chancellor will promise to deliver “security for working people” and a “decade of national renewal”, as she reveals how the Government will put advanced weaponry in the hands of British troops, provide better homes for military families and kickstart economic growth through the Plan for Change.   

At today’s Spring Statement, the Chancellor will announce a further £2.2 billion funding increase for defence from April, as she warns that Britain has to “move quickly in a changing world”. 

The funding will be invested in advanced technologies so that Britain’s armed forces have the tools they need to compete and win in modern warfare. This includes guaranteeing the investment to fit Royal Navy ships with Directed Energy Weapons by 2027. These weapons can hit a £1 coin from 1km away and take down drones at a distance of 5km.  

It will also be used to provide better homes for military families by refurbishing the defence estate – including over 36,000 homes recently brought back into public ownership from the rental sector. In addition to this, the funding will unlock rapid preparatory work, such as site surveys, planning and architecture, for the major redevelopment of Armed Forces housing through the Defence Housing Strategy.   

The investment will also help fund upgrades to infrastructure at His Majesty’s Naval Base Portsmouth, securing its ability to support Royal Navy operations into the future.   

Speaking in the House of Commons today, Chancellor of the Exchequer Rachel Reeves is expected to say: “This government was elected to change our country.

“To provide security for working people. And deliver a decade of national renewal. 

“That work of change began in July – and I am proud of what we have delivered in just nine months. 

“Restoring stability to our public finances; giving the Bank of England the foundation to cut interest rates three times since the General Election; rebuilding our public services with record investment in our NHS and bringing down waiting lists for 5 months in a row; and increasing the National Living Wage to give 3 million people a pay rise from next week. 

She will add: “Now our task is to secure Britain’s future in a world that is changing before our eyes. The job of a responsible government is not simply to watch this change. 

“This moment demands an active government stepping up to secure Britain’s future. A government on the side of working people. 

“To grasp the opportunities that we now have and help Britain reach its full potential, we need to go further and faster to kickstart growth, protect national security and make people better off through our Plan for Change. 

She will also say: “In February, the Prime Minister set out the government’s commitment to increase spending on defence to 2.5% of GDP from April 2027 and an ambition to spend 3% of GDP on defence in the next parliament as economic and fiscal conditions allow.

“That was the right decision in a more insecure world, putting an extra £6.4bn into the defence budget by 2027. But we have to move quickly in a changing word. And that starts with investment. 

“So I can today confirm that I will provide an additional £2.2bn for the Ministry of Defence next year – a further downpayment on our plans to deliver 2.5% of GDP. 

“This increase in investment is not just about increasing our national security but increasing our economic security, too. As defence spending rises, I want the whole country to feel the benefits.” 

The plan will include action to harness the ingenuity of Britain’s leading manufacturing and technology sectors, creating jobs across the country and putting more money into people’s pockets.   

The increase set to be announced today follows the extra £2.9 billion announced for defence in the Autumn Budget and takes spending as a proportion of GDP to 2.36 per cent in 2025/26 – up from 2.3 per cent in 2024/25.   

The announcement is fully funded. The new money comes from in-year funding from the Treasury reserve and from changes to the Overseas Development Assistance budget, so will not require additional borrowing and will maintain the Chancellor’s ironclad fiscal rule. 

Further detail on the Ministry of Defence’s investment plan will be set out via the Strategic Defence Review in the Spring and the Spending Review in June.   

Commenting on the increase in defence spending, Defence Secretary John Healey said: “National security is the bedrock of a successful economy and our Plan for Change. This significant increase in defence spending, on top of the £2.9bn announced by the Chancellor at the Budget, means an extra £5 billion for our Armed Forces next financial year. 

“This investment will make Britain stronger and safer in a more insecure world. And it will ensure defence is an engine for growth, creating good jobs across the nation. 
 
“These are the bold first steps of the largest sustained increase in defence spending since the Cold War announced by the Prime Minister last month. Our government is delivering for defence and investing in the outstanding men and women who keep Britain secure at home and strong abroad.” 

£2 billion new investment to support biggest boost in social and affordable housebuilding in a generation

‘Hard working’ families in England to get safe and secure homes as Chancellor announces £2 billion injection of new grant funding to deliver up to 18,000 new social and affordable homes

  • Landmark announcement part of Plan for Change to deliver security for working people by growing the economy and building 1.5 million homes.
  • £2 billion of new funding will only support development on sites that will deliver in this Parliament, getting spades in the ground quickly to build homes in places such as Manchester and Liverpool.

Helping hard working families get safe and secure homes and kickstarting economic growth are driving the government’s agenda, as the Chancellor and Deputy Prime Minister today (Tuesday 25 March) announced up to 18,000 new social and affordable homes will be built with a £2 billion injection of investment to deliver the Prime Minister’s Plan for Change.

The announcement hails a significant milestone on the government’s promise to build 1.5 million new homes whilst driving economic growth by getting Britain building again. It follows the government’s plan to inspire the next generation of British engineers, brickies and chippies, by training 60,000 construction workers to tackle skills shortages and get more young people into jobs.

The £2 billion investment boost comes as a down payment from the Treasury ahead of more long term investment in social and affordable housing planned later this year, which will provide additional funding for 2026-27 and well as for future years. This forms part of the government’s plan for tackling the housing crisis that has held working families back from the stability and security that comes with a safe roof over your head.

Thousands of new affordable homes will start construction by March 2027 and will complete by the end of this Parliament. The government is encouraging providers to come forwards as soon as possible with projects and bids to ramp up the delivery of new housing supply, in turn making the dream of home ownership a reality for more people across the country.

Today’s investment will also unlock development and opportunity on sites that are ready and waiting for spades in the ground in places such as Manchester or Liverpool.

The Chancellor announced plans on a visit to an affordable housing site in Stoke-On-Trent with the Deputy Prime Minister, working hand in hand to deliver the biggest boost to affordable and social housing in a generation.

Deputy Prime Minister and Housing Secretary, Angela Rayner said: “Everyone deserves to have a safe and secure roof over their heads and a place to call their own, but the reality is that far too many people have been frozen out of home ownership or denied the chance to rent a home they can afford thanks to the housing crisis we’ve inherited.

“This investment will help us to build thousands more affordable homes to buy and rent and get working people and families into secure homes and onto the housing ladder. This is just the latest in delivering our Plan for Change mission to build 1.5 million homes, and the biggest increase in social and affordable housing in a generation.”

Chancellor of the Exchequer, Rachel Reeves said: “We are fixing the housing crisis in this country with the biggest boost in social and affordable housebuilding in a generation. Today’s announcement will help drive growth through our Plan for Change by delivering up to 18,000 new homes, as well as jobs and opportunities, getting more money into working people’s pockets.

“At the conclusion of the current Spending Review process on 11 June 2025, the government will announce further long-term investment into the sector in England, delivering the biggest boost to social and affordable housing in a generation.”

Kate Henderson, Chief Executive at the National Housing Federation, says: “This funding top-up is hugely welcome and demonstrates the government’s commitment to delivering genuinely affordable, social housing for families in need across the country. The additional £2 billion will prevent a cliff edge in delivery of new homes, ahead of the next funding programme being announced.

“Social housing is the only secure and affordable housing for families on low incomes, and the dire shortage has led to rocketing rates of poverty, overcrowding and homelessness.

“Investment in social housing is not only key to tackling the housing crisis, but is also excellent value for money, reducing government spending on benefits, health, and homelessness as well as boosting growth. Housing associations are ready to work with the government to deliver a generation of new social homes.

Charlie Nunn, CEO, Lloyds Banking Group said: “A safe and lasting home is the foundation for good lives and livelihoods, and we welcome this boost to building much-needed social and affordable homes. 

“As the UK’s biggest commercial supporter of social housing, we’re working across the private, public and community sectors to help increase provision of good quality, genuinely affordable housing for those in need.”

David Thomas, CEO at Barratt Redrow said: “To increase construction activity and build the homes the UK desperately needs, we need support for demand across all tenures.

“As well as providing more much-needed affordable homes, this welcome investment will help unlock mixed-tenure developments and to create jobs and economic growth across the country.”

Stephen Teagle, Chair of The Housing Forum said: “This additional funding signals that the Government is listening to the sector and reaffirms its strong commitment to accelerating the delivery of much-needed affordable housing while driving economic growth.

“It represents an unprecedented intervention which, when paired with sustained, long-term investment, will be instrumental in meeting the growing demand for affordable homes.

“Now, it’s up to the industry to rise to the challenge — accelerating delivery, building momentum towards the government’s target of 1.5 million new homes, and ensuring we provide the housing this country urgently needs.”

Starmer orders England’s councils to tackle ‘pothole plague’

  • £1.6 billion investment to tackle scourge of potholes to be delivered to councils from next month as PM tells councils to put cash to use
  • for the first time every council in England must publish how many potholes they’ve filled or lose road cash
  • local authorities that comply will receive their full share of the £500 million roads pot – enough to fill the equivalent of 7 million potholes a year, as part of the government’s Plan for Change
    • UK government also announces £4.8 billion for 25/26 for motorways and major A-roads including economy boosting road schemes on the A47 and M3

The public will now see exactly what’s being done to tackle potholes, as the government demands councils prove their progress or face losing cash. 

From mid-April, local authorities in England will start to receive their share of the government’s record £1.6bn highway maintenance funding, including an extra £500m – enough to fill 7 million potholes a year. 

But to get the full amount, all councils in England must from today (24 March 2025) publish annual progress reports and prove public confidence in their work. Local authorities who fail to meet these strict conditions will see 25% of the uplift (£125m in total) withheld.

Also today, the Transport Secretary has unveiled £4.8bn funding for 2025/6 for National Highways to deliver critical road schemes and maintain motorways and major A-roads.

This cash will mean getting on with pivotal schemes in construction, such as the A428 Black Cat scheme in Cambridgeshire, and starting vital improvements to the A47 around Norwich and M3 J9 scheme in Hampshire, building thousands of new homes, creating high-paid jobs, connecting ports and airports, to grow the economy and deliver the Plan for Change.  

It comes as figures from the RAC show drivers encounter an average of 6 potholes per mile in England and Wales, and pothole damage to cars costs an average £600 to fix. According to the AA, fixing potholes is a priority for 96% of drivers. 

This government is delivering its Plan for Change to rebuild Britain and deliver national renewal through investment in our vital infrastructure which will drive growth and put more money in working people’s pockets by saving them costs on repairs.

Prime Minister Keir Starmer said: “The broken roads we inherited are not only risking lives but also cost working families, drivers and businesses hundreds – if not thousands of pounds – in avoidable vehicle repairs.

“Fixing the basic infrastructure this country relies on is central to delivering national renewal, improving living standards and securing Britain’s future through our Plan for Change.

“Not only are we investing an additional £4.8 billion to deliver vital road schemes and maintain major roads across the country to get Britain moving, next month we start handing councils a record £1.6 billion to repair roads and fill millions of potholes across the country.

“British people are bored of seeing their politicians aimlessly pointing at potholes with no real plan to fix them. That ends with us. We’ve done our part by handing councils the cash and certainty they need – now it’s up to them to get on with the job, put that money to use and prove they’re delivering for their communities.”

The Transport Secretary, Heidi Alexander, said: “After years of neglect we’re tackling the pothole plague, building vital roads and ensuring every penny is delivering results for the taxpayer.

“The public deserves to know how their councils are improving their local roads, which is why they will have to show progress or risk losing 25 per cent of their £500m funding boost. 

“Our Plan for Change is reversing a decade of decline and mending our pothole-ridden roads which damage cars and make pedestrians and cyclists less safe.”

To ensure councils are taking action, they must now publish reports on their websites by 30 June 2025, detailing how much they are spending, how many potholes they have filled, what percentage of their roads are in what condition, and how they are minimising streetworks disruption.

They will also be required to show how they are spending more on long-term preventative maintenance programmes and that they have robust plans for the wetter winters the country is experiencing – making potholes worse. 

By the end of October, councils must also show they are ensuring communities have their say on what work they should be doing, and where. The public can also help battle back against pothole ridden roads by reporting them to their local council, via a dedicated online portal. 

To further protect motorists given continued cost-of-living pressures and potential fuel price volatility amid global uncertainty, the government has frozen fuel duty at current levels for another year to support hardworking families and businesses, saving the average car driver £59.  

Edmund King, AA president and member of the Pothole Partnership, said:  “Getting councils to show value for money before getting full funding is a big step in the right direction, as it will encourage a more concerted attack on the plague of potholes.

“At the same time, local authorities can share best practice, so others can learn what new innovations and planned maintenance techniques have worked for them.” 

The £4.8bn for National Highways will protect the country’s strategic road network, which provides critical routes and connections across the country for people, businesses and freight to help drive for growth as part of Plan for Change.

The £4.8bn includes a record £1.3bn investment to keep this vital network in good repair, so the network remains fit for the future, and £1.8bn for National Highways’ daily operations that are critical to ensuring the network runs safely and smoothly for millions of people and businesses that rely on it every day. As well as £1.3bn for essential improvement schemes to unlock growth and housing.  

Since entering office, the UK government has approved over £200m for the A47 Thickthorn Junction, and £290m for M3 Junction 9 plus £90m for local road schemes like the A130 Fairglen Interchange, the South-East Aylesbury Link Road, the A350 Chippenham Bypass, the A647 scheme in Leeds. This is a total of over £580m for schemes to get Britain moving.

UK Government Scotland: Energy bill support for Scots through Warm Home Discount

Proposals to increase the funding available in Scotland for the Warm Home Discount next winter will help reduce costs in over half a million homes in Scotland – with £150 off energy bills.

This will see an additional 200,000 homes in Scotland become eligible for the support.

UK Government ‘unleashes’ next generation of construction workers to build 1.5m homes

  • Up to 60,000 more engineers, brickies, sparkies, and chippies to be trained by 2029, as Chancellor outlines how the Government will train more workers to tackle skills shortages and inspire the next generation into the construction sector.
  • New training will help deliver 1.5 million homes which will transform communities and drive growth through the Plan for Change.
  • Reforms will get young people into well paid, high skilled, jobs in the construction sector by funding additional placements, establishing Technical Excellence Colleges, launching new foundation apprenticeships, and expanding Skills Bootcamps.
  • This injection of over £600 million over the next four years will also encourage experienced builders to help train and inspire the next generation.

Ahead of the Spring Statement on Wednesday {26 March) the Chancellor has announced £600 million worth of investment to train up to 60,000 more skilled construction workers.

This will deliver well paid jobs across the country in the construction sector and help build 1.5 million homes to transform communities by the end of this Parliament. 

Chancellor Rachel Reeves said: “We are determined to get Britain building again, that’s why we are taking on the blockers to build 1.5 million new homes and rebuild our roads, rail and energy infrastructure.

“But none of this is possible without the engineers, brickies, sparkies, and chippies to actually get the work done, which we are facing a massive shortage of. We’ve overhauled the planning system that is holding this country back, now we are gripping the lack of skilled construction workers, delivering on our Plan for Change to boost jobs and growth for working people.”

The sector is facing significant shortages, the latest Office for National Statistics figures show that there are over 35,000 job vacancies and employers report that over half of vacancies can’t be filled due to a lack of required skills – the highest rate of any sector. Demand is expected to increase further to deliver the homes and infrastructure that this country needs.

Funding and reforms announced today will pay for more training places, ensure a sustainable flow of skilled construction workers and help businesses invest more in training. It will encourage the men and women who have spent decades working on building sites, to pass on their skills to the next generation of construction workers.

Building the skilled workforce of the future is key to driving economic growth, the central mission of the Government’s Plan for Change. These construction jobs are the type of secure, well paid, in demand jobs that will help put more money in working people’s pockets and fuel growth.

Education Secretary, Bridget Phillipson, said: “Skills are crucial to this government’s mission to grow the economy under our Plan for Change, and nowhere is that clearer than in the construction industry.

“We are being held back by the largescale skills shortages in the construction sector which is a major barrier to the delivery of the growth mission.

“These measures will break down barriers to opportunity for thousands of young people, helping them to thrive in – and build – their local communities.”

Today’s announcement will provide £100 million of new investment to fund 10 new Technical Excellence Colleges and £165m of new funding to help colleges deliver more construction courses.

Skills Bootcamps in the construction sector will also be expanded, with £100 million of funding to ensure new entrants, returners, or those looking to upskill within the industry will be able to do so.

All Local Skills Improvement Plan (LSIP) areas will benefit from £20 million to form partnerships between colleges and construction companies, to boost the number of teachers with construction experience in colleges, sharing their vital expertise by training the next generation of workers.

Construction will also be one of the key sectors that will benefit from new foundation apprenticeships backed by an additional £40 million, which will be launching in August 2025. This will inspire more young people into the construction industry and allow them to progress and specialise in advanced apprenticeships, giving them the tools they need for a sustained and rewarding career.

As part of this new offer, employers will be provided with £2,000 for every foundation apprentice they take on and retain in the construction industry, on top of fully funding the training costs through the new Growth and Skills Levy.

A further £100 million of Government funding, alongside a £32 million contribution from the Construction Industry Training Board (CITB) will fund over 40,000 industry placements each year for all Level 2 and Level 3 learners, those studying NVQs, BTECs, T-levels, and advanced apprenticeships.

This will help get learners ‘site-ready’ and address the ‘leaky pipeline’ of learners who don’t progress into the sector. The CITB will also double the size of their New Entrant Support Team (NEST) programme to support SMEs in recruiting, engaging, and retaining apprentices.

To ensure employers are able to work collaboratively to secure the workforce needed to meet future demand, the Government will sponsor a new Construction Skills Mission Board. Co-chaired by Government and by Mark Reynolds, Executive Chair of Mace, the Board will be empowered to develop and deliver a construction skills action plan and provide strategic leadership to the construction sector.

The government’s communications campaigns continue to promote skills and their contribution to opportunity and growth for individuals and employers.

In collaboration with the Department for Work and Pensions (DWP) through Job Centre Plus, the DfE campaign highlights the construction industry’s value for growth, celebrating employers who contribute significantly to workforce training, and emphasising the benefits of careers in construction. 

The announcement follows a series of reforms announced during National Apprenticeship Week, including changes to English and maths requirements that will see up to 10,000 more apprentices qualify each year in key sectors, and new shorter apprenticeships. Changes to end point assessments will also mean it is even easier for businesses and providers to support getting people into the workforce.

Last year the Education Secretary announced new Construction Skills Hubs, funded by industry, which will also speed up the training of construction workers crucial to supporting the government’s homebuilding drive.

Mark Reynolds, Executive Chair Mace, Co-Chair of the Construction Skills Mission Board and Co-Chair of the Construction Leadership Council said: “This is fantastic news and demonstrates that Government is committed to working with the construction industry to deliver 1.5m homes by the end of this Parliament and its ambitious plans for infrastructure delivery.

“It’s a hugely significant funding package, and the establishment of the Construction Skills Mission Board will enable us to collaborate with Government to drive change at pace.

“Understandably, construction firms across the country are looking for certainty of pipeline before they commit to investing in new jobs and skills – but this investment by the Chancellor will be critical in giving them the confidence they need. There is now no excuse – industry must embrace the Government’s growth mission and match their ambition.”

Tim Balcon, CITB (Construction Industry Training Board) Chief Executive, said: “We are delighted with the support the Government is giving the construction sector with increased investment.

“This package will provide vital support, where it is needed most – it will cut straight to the heart of the construction industry being able to address the challenge of building 1.5 new homes for people that desperately need them. 

“As an industry, we now need to grasp this opportunity and play our part in delivering it. I genuinely believe this is a once-in-a-generation chance to us to recruit and train our workforce – equipping more people with the skills they urgently need now and in the future.” 

£100 million to revamp local sports facilities across UK

People across the UK will benefit from upgraded sports facilities in their local area thanks to £100 million invested by UK Government

  • Major package to upgrade hundreds of local grassroots sports facilities with new and improved pitches, changing rooms, goalposts and floodlights
  • Investment will target deprived areas and support greater access and participation levels among under-represented groups
  • At least 40% of funded projects have a multi-sport offer ensuring more can participate and get active as the Government delivers its ‘Plan for Change‘

People across the UK will benefit from upgraded sports facilities in their local area thanks to £100 million invested by government yesterday.

Working together with the Premier League, The FA and Government’s Football Foundation in England, the Cymru Football Foundation in Wales, and the Football Associations in Scotland and Northern Ireland, the funding is expected to support hundreds of new and improved pitches, changing rooms, goalposts and floodlights to improve access to sport and physical activity for local communities. 

It will be targeted at deprived areas and support greater access and participation levels among under-represented people including women and girls, ethnic minority groups and disabled players.  

The major package delivers on the Government’s Plan for Change, with the funding designed to break down barriers to opportunity and tackle persistent health inequalities through prevention, that will support an NHS fit for the future.

These facilities also encourage communities to come together and give young people opportunities to build vital skills and connections while creating a sense of purpose and pride in where they live.

Culture Secretary Lisa Nandy announced the funding during a visit to Bonnyrigg Rose Community Football Club, a grassroots football facility in Midlothian, Scotland which supports over 700 players. 

The funding will be invested in sites during 2025/26, with £82.3 million allocated to projects in England (including a £2 million uplift of new investment committed in the current financial year), £8.6 million in Scotland, £6.1 million in Wales and £3 million in Northern Ireland. 

It follows the Culture Secretary’s pledge to inspire the next generation as the Lionesses go to UEFA Women’s EURO 2025 this summer as defending champions, and England, Scotland, Wales and Ireland look ahead to hosting UEFA EURO 2028. 

Culture Secretary Lisa Nandy said: “Grassroots sport clubs are at the heart of communities across the UK. That’s why we’re investing £100 million to support new and upgraded pitches, changing rooms and clubhouses across the country, providing transformational funding to the areas that need it most.

“As we deliver our Plan for Change, we will remove barriers to an active lifestyle and increase opportunity for all, ensuring that wherever people may live, they can access high quality sports facilities and experience the joy that sport brings.

Government funding through the Multi-Sport Grassroots Facilities Programme is amplified by significant contributions by The FA and Premier League in England. Delivery partners also leverage investment from local stakeholders through initiatives such as the Scottish FA and Scottish Football Partnership Trust’s ‘Pitching in’ campaign which aims to raise £50 million for football facilities over the next five years. “

https://twitter.com/i/status/1903109169420419211

Of the funded projects, at least 40% will have a multi-sport offer so that more people can participate in sports other than football, meaning more people can get access to a wider variety of sports and activities that appeal to them including rugby, cricket and basketball. 

Clubs and organisations across the UK are now being urged to come forward and apply for funding. Applications can be made in England via the Football Foundation on an ongoing basis, and in Wales via the Cymru Football Foundation.

Dedicated windows are opening shortly in Scotland and Northern Ireland with those interested encouraged to check relevant FA websites for more details. The first tranche of beneficiaries are expected to be confirmed in summer 2025. 

The Secretary of State for Scotland Ian Murray, said: “Grassroots sports are the backbone of Scottish communities, providing opportunities for individuals of all ages and abilities to take part in physical activities.

“Through this scheme almost 100 facilities across Scotland, including in our island and rural communities, have been built or upgraded and with this new funding we can look forward to many more.

“As a lifelong football fan I am excited as we build towards hosting Euro2028. I look forward to working with the SFA to ensure everyone has the opportunity to play our national sport – as we support the team on the biggest stage.”

Scottish FA President, Mike Mulraney said: “When I became President, I made no secret of the fact that improving facilities at all levels should be the association’s No.1 priority.

“We are grateful to the Department of Culture, Media and Sport and partners for this latest commitment, which will enable us to further improve the infrastructure of our national sport.

“This will increase participation, improve health and wellbeing and allow more people to experience the Power of Football.

“It follows the Scottish FA’s commitment to ensuring profits are diverted to facilities and infrastructure via our Pitching In fund and I look forward to further strengthening our partnership with UK Government, DCMS and Scottish Government, as well as philanthropic and business communities, to rejuvenate Scottish football’s facilities footprint.”

Celebrities urge government to rethink devastating cuts to disabled people’s social security 

  • High-profile names including Sir Stephen Fry, Stanley Tucci, Aisling Bea, Levi Roots, Guy Garvey, Dame Arlene Phillips, Charlotte Ritchie and Jed Mercurio have spoken out against the UK government’s proposals to slash financial support for disabled people. 
  • Comedian Rosie Jones: “Disabled people are scared of what the future holds”. 
  • Actor Brian Cox: “So many people having to turn to food banks is a stain on this country”. 
  • The comments come as new polling by Trussell reveals that 7 in 10 people think social security should at least pay for disabled people’s essential living costs. 
  • The anti-poverty charity has branded the cuts as ‘cruel, irresponsible and out of touch’ with what the public want 

Celebrities including Rosie Jones, Sir Stephen Fry and Stanley Tucci have united to express their outrage at the social security cuts announced on Wednesday, saying that they risk pushing even more disabled people to food banks. 

The UK government, who were elected on manifesto pledges to end the need for emergency food parcels and to make sure Universal Credit tackles poverty, has published proposals that will make it harder for disabled people to get the payments that help them cover additional costs that they face such as purchasing specialist equipment or travel to healthcare services. 

Comedian Rosie Jones, who has cerebral palsy, spoke out about the potential impact of these cuts, saying: “Disabled people are scared of what the future holds if there’s cuts to disability payments, as they are already not enough to cover life’s essentials. Disabled people are far more likely to need to use a food bank and further cuts will only deepen the hardship they are facing.”  

Polling done this week by Trussell, an anti-poverty charity which supports a community of 1,400 food banks, indicated that 60% of Brits think the UK government is ‘doing badly’ on reducing the number of people experiencing poverty across the UK. 

Actor Brian Cox, who experienced poverty as a child, urged the Government to rethink the plans when he said: “The fact that so many people are having to turn to food banks is a stain on this country.

“This government vowed to tackle the need for emergency food parcels in the UK, yet this decision risks even more people having to seek support. It makes no sense and will have a lasting impact on the lives of so many people already finding it difficult to afford life’s essentials.” 

Trussell has already expressed concern that the cuts will have a significant impact on people who are already facing hunger and hardship with 75% of people referred to one of their food banks living in a household where someone is disabled.  

Recent research by Trussell indicated that three quarters (77%) of people getting Universal Credit and health or disability payments are already having to go without essentials. Four in 10 (43%) are already missing meals to try and keep up with other essential costs. A fifth (19%) have had to turn to a food bank in just the last month. 

Calling for a reversal of the proposals, Sir Stephen Fry said: “Cuts should be for people who can best afford them, not for disabled people, who are amongst the most vulnerable and overlooked of all our population.

“The social security system should be rooted in justice and compassion, fairness and need. It’s not too late to rethink this.” 

The celebrities are not alone in thinking that government support should be enough to ensure that no one needs a food bank to survive. Trussell’s data shows that 83% of Brits think the Government is responsible for ensuring disabled people’s essential needs are met. 

Two of Trussell’s Ambassadors reflected this, adding their voices to the call for change by saying: 

  • Television writer Jed Mercurio: “While our social security system requires regular review and reform to ensure it targets people most in need, these cuts will only increase the likelihood of people living with a disability needing to use a food bank.” 
  • Entrepreneur Levi Roots: “From my work with Trussell, I know disabled people in receipt of Universal Credit are already having to make impossible decisions between feeding their children and heating their homes. We need compassionate solutions that make food banks obsolete. Cuts to disability payments will simply keep food banks in business for longer.” 

Actor Stanley Tucci has encouraged people to speak out about the risk of the cuts, saying: “It breaks my heart to know so many people in a country as wealthy and developed as UK are experiencing hunger.

“Through my work with Trussell, I know that the reality of these cuts will be parents in disabled families having to skip meals so that they can feed their children. Things don’t have to be this way. We must shout as loud as we can to let the UK government know this plan is wrong.” 

If you want to share your thoughts on the proposed cuts, you can email your MP via the Trussell website at https://action.trussell.org.uk/disability-cuts.  

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Plan for future of Grangemouth?

Friends of the Earth: Project Willow “does nothing” for the hundreds of people at Grangemouth set to lose their jobs in the coming months

Plans to secure a long-term industrial future for Grangemouth have been stepped up as a feasibility study sets out nine options for its future.

The plan – which is backed by £25 million from the Scottish Government and £200 million from the UK Government – will support jobs, unlock investment and drive growth.

The £1.5 million feasibility study – published today by EY – follows the recent decision by Petroineos to decommission the oil refinery.

It has identified credible long-term industrial options for the Grangemouth site and explored how Grangemouth can build on its skilled workforce, local expertise and long heritage as a fuel leader in Scotland to forge a new path in low carbon energy production.  

The report provides nine proposals likely to attract private investment, including plastics recycling, hydrogen production and other projects that could create up to 800 jobs by 2040.

It follows First Minister John Swinney’s announcement of £25 million to establish a Grangemouth Just Transition Fund, which will support businesses and stakeholders to bring forward investible propositions for the site over the next 12 months, and the Prime Minister’s announcement last month of £200 million to help unlock Grangemouth’s full potential.

First Minister John Swinney said: “We will leave no stone unturned in order to secure the future of the Grangemouth refinery site, and the Scottish Government has already committed or invested a total of £87 million to help do so.

“Grangemouth is home to over a century of industrial expertise and employs thousands of highly skilled workers, placing the site at a massive competitive advantage and creating a unique opportunity for investors.

“Everyone working at Grangemouth’s refinery – and in the wider industrial cluster – is a valued employee with skills that are key to Scotland’s economic and net zero future.

“This report sets out a wide range of viable alternatives for the refinery site, demonstrating that a long term, new industrial future at Grangemouth is achievable.

“We will continue to work closely with the UK Government to realise these opportunities and Scottish Enterprise stands ready to support inward investors looking to progress any of these technologies.”

UK Energy Minister Michael Shanks said: “We committed to leaving no stone unturned in supporting an industrial future for Grangemouth delivering jobs and economic growth. 

“This report and the £200 million investment by the UK Government demonstrates that commitment. 

“We will build on Grangemouth’s expertise and industrial heritage to attract investors, secure a long-term clean energy future, and deliver on our Plan for Change.” 

To kickstart the process, Energy Minister Michael Shanks and Acting Cabinet Secretary for Net Zero and Energy Gillian Martin co-chaired a meeting yesterday (Wednesday 19 March) of the Grangemouth Future Industry Board with local industry leaders, Falkirk Council, trade bodies and unions.

Scottish Enterprise and the UK Government’s Office for Investment will work with Petroineos to market the proposals set out in Project Willow and seek investor interest.   

Alongside launching a search for investors, both governments have also committed to review the Project Willow policy recommendations and understand how government funding can be deployed to mature proposals from the private sector. 

The nine projects include: 

  • Waste: hydrothermal upgrading (breaking down hard to recycle plastics), chemical plastics recycling, ABE biorefining (breaking down waste material)
  • Bio-feedstock: breaking down Scottish timber into bioethanol, anaerobic digestion of bioresources and digestate pyrolysis, HEFA (conversion of Scottish cover crops into sustainable aviation fuel and renewable diesel using low carbon hydrogen).
  • Offshore wind conduit: Replacing natural gas with hydrogen, using low carbon hydrogen to produce methanol and convert it to SAF, producing low carbon ammonia from hydrogen for shipping and chemicals.

Just transition campaigners say Project Willow “does nothing” for the hundreds of people at Grangemouth set to lose their jobs in the coming months, however.

The Project Willow feasibility study, published yesterday:

  • Sets out 9 possible options for the future of Grangemouth, all of which would require private investment
  • States up to 800 jobs could be created by 2040
  • Does not include any support for the hundreds of people set to lose their jobs this year

PetroIneos announced the oil refinery will close by summer 2025. The company instead will import refined oil, effectively offshoring the resultant climate pollution.

Friends of the Earth Scotland just transition campaigner Rosie Hampton commented: “It would be disingenuous to suggest the Project Willow report is a plan for workers and the community at Grangemouth – it’s simply a set of suggestions that would ultimately rely on private investment if they were to happen.

“They haven’t been put together with any involvement from trade unions or workers at the refinery, and it does nothing for the hundreds of people set to lose their jobs when the refinery closes this summer.

“As one of Scotland’s most polluting sites, we’ve known for years that Grangemouth needed a transition plan. There was no excuse for politicians not having the right investment, planning and policy in place, because their inaction has paved the way for the swingeing job cuts by Petroineos.

“It’s welcome that options beyond fossil fuels are finally being considered but the scope of the report has left room for dodgy greenwashing projects which are more about maximising profits for companies than protecting the environment.

“It’s not surprising that a report commissioned by Petroineos using public money doesn’t address that company’s failures to plan for a sustainable future and look after its workforce. The core assumption that private money has to be enticed into investing with government subsidy, for which the public get the risk but not the returns, is a real cause for concern.

“The paper speculates it might be possible to create up to 800 jobs by 2040 but that is 15 years too late for the 400 people at the refinery, and many more across the supply chain, facing the loss of their livelihoods in the next few months.

“The two governments must now set out much tighter criteria for any investments and say how it will build on this to create an actual just transition plan that will protect people and the planet.”

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