Chancellor Rachel Reeves has set out her plans for the UK economy during her Spring Statement in the House of Commons.

It came as the Office for Budget Responsibility (OBR) – which monitors the government’s spending plans – unveiled its latest economic forecasts.

Here is a summary of the main points.

• Health-related universal credit for new claimants, which was already due to be halved from April 2026 under a package announced last week, will also now be frozen in cash terms until 2030
• The standard allowance for universal credit will now rise to £106 per week, instead of £107 per week in 2030
• As outlined last week, for existing claimants health-related payments will be frozen in cash terms until 2030
• There will also be a stricter eligibility test for personal independence payments (Pips), the main disability benefit, from November 2026
• Incapacity benefits to be frozen in cash terms for existing claimants at £97 per week from April next year, with a top-up payment for those with the most severe conditions
• Those aged under 22 will no longer be able to claim the incapacity benefit top-up of universal credit

• The Office for Budget Responsibility (OBR) has downgraded predicted growth for this year from 2% to 1%
• But it has upgraded estimated growth for the next four years, to 1.9% next year, 1.8% in 2027, then 1.7% in 2028 and 1.8% in 2029
• Inflation forecast to average 3.2% this year, up from 2.6% previously forecast, before falling back to 2.1 in 2026
• Inflation expected to hit 2% government target from 2027
• The OBR says the government’s changes to the planning system in England will boost the size of the economy by 0.2% by 2030

• Defence spending, which had been due to rise £2.9bn next year, to increase by a further £2.2bn
• The Treasury says this will take military expenditure to 2.36% of national income next year, a “down payment” on plans to raise it to 2.5% by 2027
• Ministers say the spending will be funded by reducing overseas aid from 0.5% to 0.3% of gross national income in 2027, and from the Treasury’s reserves

• Target to reduce the administrative costs of government departments by 15% by 2030
• About 10,000 civil service jobs are expected to go, including staff working in HR, policy advice, communications and office management