Chancellor Rachel Reeves is warning that reform of health and disability benefits is coming shortly
Chancellor Rachel Reeves says a revamp of health and disability benefits is on the horizon – with details to be revealed before the end of March. She stressed the urgent need to tackle long-standing issues, such as the soaring costs linked to health and disability benefits.
Work and Pensions Secretary Liz Kendall is poised to present the Government’s blueprint for reform ahead of the spring statement, slated for March 26. Reeves reflected on the difficult decisions required in her Budget to guarantee stability, while taking a swipe at the opposition for their lack of feasible alternatives.
She said: “I accept that there are costs to responsibility, but the costs of irresponsibility would have been far higher. Those who oppose my Budget know that, too. That is why, since October, I have seen no alternative put forward by the opposition parties, no alternative to deal with the challenges that we face, no alternative to restoring economic stability and therefore no plan for driving economic growth.”
Ms Reeves, in a speech rejecting criticism of the Government’s support to expand Heathrow Airport, stressed the critical role of stability, saying “it is the rock upon which everything else is built”. She added: “Economic stability is the precondition for economic growth. That’s why the first piece of legislation that we passed as a government was the Budget Responsibility Act, so that never again can we see our independent forecasters sidelined, and never again will we see a repeat of the Liz Truss mini-budget.”
Reeves has declared that the Government’s actions will be guided by the national interest – and she said this included strengthening our special relationship with the United States under President Trump’s administration. However, she said it also entails reshaping the UK’s relationship with the EU, reports the Manchester Evening News.
The Chancellor underscored the UK’s need for robust connections with swiftly growing economies and defended her recent trade visit to China. She also disclosed that Jonathan Reynolds, the Business Secretary, is set to visit India next month for trade talks.
What was in the Budget?
The Chancellor’s first Budget in October 2024 put up taxes by £40 billion. Yet it also offered a boost to spending.
Increases were made to employers’ national insurance contributions. There was also a change to debt rules to allow the Government to borrow more money.
The Budget saw Labour vow to improve the UK’s schools and the NHS with more spending over the next five years. But the Chancellor also emphasised the need for fiscal responsibility and vowed to stick to election promises on avoiding tax rises for “working people”.
