Responding to the Spring Statement, CPS Director Robert Colvile said:
‘Given where Rachel Reeves found herself, the Chancellor should be congratulated for not making things worse – in particular, by raising taxes again.
‘It was also welcome to see the Government focusing on reducing the welfare bill, cutting the size of the Civil Service and making Whitehall work more efficiently – though the proof will be in the delivery. And it was particularly welcome to see planning reform, which the CPS has championed for so long, being judged to make a strong contribution to growth.
‘But the Chancellor’s Spring Statement was fatally undermined by a failure to acknowledge that her own actions have contributed to Britain’s economic woes, and continue to do.
‘It was not global uncertainty that imposed a multi-billion-pound jobs tax, or introduced an Employment Rights Bill loathed by every business in the country. Those measures will make it harder to create the jobs and growth that will deliver the welfare savings the Government is promising.
‘Looking ahead, we face a future of lower productivity, higher borrowing and growth coming in at under 2 per cent every single year – a dismal scenario. Even if the Government’s plans all come off, and the forecasts are accurate, and there are no further fiscal shocks, we will still only end up with the same paper-thin level of fiscal headroom as after the Budget.
‘In other words, for all the Chancellor’s claims to have stabilised the public finances, the odds are extremely high that she, and we, will soon be back in the same place all over again.’
ENDS
NOTES TO EDITORS
- Robert Colvile is Director at the Centre for Policy Studies
- For further information or media interviews please contact Emma Revell on 07931 698246 and [email protected]
- On Wednesday April 2, the CPS is hosting a public panel event in Westminster to discuss the Spring Statement with Rt Hon Mel Stride MP and the OBR’s David Miles. Media welcome, sign up here.
- The Centre for Policy Studies is one of the oldest and most influential think tanks in Westminster. With a focus on taxation, economic growth, housing, immigration, and energy abundance, its goal is to develop policies that widen enterprise, ownership and opportunity.
Date Added: Wednesday 26th March 2025
