What is the spring statement of the UK and what could be announced?

UK Labor Government Wednesday will undergo intensive check when Finance Minister Rachel Reivz is preparing to update legislators on her expenses and taxation and economic outlook on the background of troubled Times for UK

It is expected that Reiviz will announce the reduction of billions of pounds as a way to close the budget deficit caused by the cost of borrowing since its first financial plan released last fall.

The Minister of Finance has already promised to follow his “financial rules” set out in the “Autumn budget” last October: to ensure that everyday expenses will be fulfilled by tax revenues and that state debt falls as a share of economic products up to 2029-30.

UK Finance Minister Spring statementIt must be submitted in Parliament at 12.30pm in London time, will be granted together with the latest economic forecasts on budgetary responsibility (OBR), an independent public watchdog.

OBR is Reportedly expected In order to reduce UK growth forecasts by 2025 and halve the preliminary estimate of 2%, and the smaller production volume exerts pressure on government borrowing and causes Riva to reduce government costs by £ 10 billion (12.96 billion).

The UK is also faced with the ghost of temporary inflation rate, According to the Bank of Englandtogether with Continuing economic sluggishness In recent months.

It is expected that Reivz hints at the change of the economic fund since its latest budget statement, with uncertainty from US President Donald Trump’s trade tariffs, which is allegedly inflation, also creates wind for the economy.

The Treasury spoke with a press release on Tuesday, which said that the Reiviz promised to bring “security and national update” in its spring statement, which will be developed “to” fill economic growth, work and preservation of our country “.

Reiviz also warns that “we must quickly move into the changing world” and it will submit a significant step to the cost of 2.5% GDP to defense with a $ 2.2 billion funding (2.6 billion dollars), the Treasury reports.

Riva’s statement is expected to decide “fiscal erosion through tighter costs,” said Emily Nichol and Edward Maling on Daiwa Capital Markets.

“At the time of the October budget announcement, OBR predicted the current budget surplus of 299/30 billion pounds, with this amount presents the so -called” head supply “to fulfill its mandatory goal of a balanced current budget.

“Economic growth has recently been lower than the expectation of OBR – and OBR is likely to double double the GDP forecast by 2.0%Y/Y at 2025 – exceeding public borrowing and lower tax revenues relative to the forecast of OBR.

However, economists have warned that “an increase in about 20-40 basic points in gilded yield on most of the curve from mid-October will be considered an OBR as a structural and will be together with some other slippage-at the absence of a new policy-hated policy.”

The government has already outlined plans for reducing the expenses for the 5 billion poundsAs well as intention to reduce administrative costs for public policy, 15% by 2030.

“The spring statement will increase the necessary borrowings over the next two years, which have occurred mainly with higher percentages.

“These savings are likely to focus on the expenses for the well -being and accrual of the public sector, and are delayed until the second half of the parliament, in 2027,” they added.

Geopolitical Consultancy Teneo Analysts have agreed that, while in the autumn budget in October in October, 40 billion pounds were accepted by a targeted state -owned tax financing tax, the subsequent statement of the Reiva “may lead to a reduction in the expenses for well -being,” Taxes should be observed. “

“Some assistance for employers may also come, after contradictory national insurance contributions in October. In general, the statement will serve to emphasize the limited financial space, since the search and performance continues against the background of pressure to improve public services and greater protection costs,” the Teneo analysts added.

The Treasury press secretary said CNBC on Tuesday that the Treasury “will not comment on speculation around OBR forecasts.”

“The chancellor also realized that she did not repeat the October budget and will now be focused on the growth of the economy and the introduction of waste in state expenses through a review of costs,” the press secretary added.

Reiva has repeatedly commented on that he did not give up his financial rules and to raise taxes further, although economists expect more levies this year.

In the British business community last fall, it was widely embarrassed when it lifted the tax burden to enterprises and employers for the purpose of connecting the hole in state finances and allowed to invest in public services.

Leaders of the British industry warned this Fiscal Treasury plans However, investments, jobs and growth may weigh.

Reivz defended the tax as a “one -time” measure and necessary to increase investment in public services. She has repeatedly stated that the increase in UK’s growth was her number one priority, and promised that she would not loosen the financial rules and goals she imposed on her department.