Kevin Peachey
Cost of living correspondent

Chancellor Rachel Reeves chose to conduct her interviews this morning in front of a property construction site.

Why? Because she wants to stress the positive impact on economic growth of the government’s ambitious housebuilding targets.

Planning reforms will boost the economy by £6.8bn, according to the Office of Budget Responsibility (OBR).

But here’s the catch for potential first-time buyers: Even if 1.5 million homes are built, house prices won’t fall, the OBR - the official forecaster - said.

Each year until 2029, property prices are expected to go up by about 2.5% on average, roughly in line with wage rises.

Planning reforms are expected to mean prices being 0.8% lower in 2029 than they would have otherwise been, but still rising.

In fact, the average house price is forecast to rise from about £265,000 at the end of last year, to £295,000 in 2029.

In Reeves' Autumn Budget in October, Labour's first since 2010, the chancellor announced tax rises worth £40bn to fund the NHS and other public services.

But Reeves was clear that rates of income tax and National Insurance (NI) paid by employees, and of VAT, were to remain unchanged.

As part of the tax hikes, she announced that basic rate capital gains tax on profits from selling shares would increase from 10% to 18%, with the higher rate rising from 20% to 24%.

On business taxes included in the tax rises, Reeves announced companies would pay NI at 15% on salaries above £5,000 from April, up from 13.8% on salaries above £9,100, raising an additional £25bn a year, and added that tax paid by private equity managers on share of profits from successful deals to rise from up to 28% to up to 32% from April.

She also introduced a new flat-rate tax of £2.20 per 10ml of vaping liquid from October 2026, as ministers shelve Tory plans to link the levy to nicotine content. She also introduced tax on tobacco to increase by 2% above inflation, and 10% above inflation for hand-rolling tobacco.

You can catch back up with what was announced in the Budget with our look at the key points.

Dearbail Jordan
Business reporter

Image source, Reuters

As you would expect, the chancellor is keeping tight-lipped about taxes.

Asked by Times Radio if it was the truth that she would have to return at the Autumn Budget with more cuts or tax rises, Reeves said: "No, it's not."

Does that mean she's ruling rises out? Reeves was circumspect. "What I'm saying is that there are loads of things that this government is doing that are contributing to growth," she said.

The Institute for Fiscal Studies (IFS) describes itself as the UK’s leading independent economics research institute.

It says its "world-class research helps policymakers ... understand the impact that policy decisions have on individuals, households and businesses."

It's non-profit and not affiliated with any political party.

Its funds come from various sources, "including the Economic and Social Research Council, UK government departments, foundations, the European Research Council, international organisations, companies and other non-profit organisations."

It is "likely" the chancellor will have to raise taxes in the Autumn Budget if the economy and the public finances deteriorate, according to the Institute for Fiscal Studies.

Paul Johnson, director of the think tank, said that Rachel Reeves has left herself with "very small" headroom of £9.9bn.

"There's a good chance that economic and fiscal forecasts will deteriorate significantly between now and an Autumn Budget. If so, she will need to come back for more which will likely mean raising taxes even further," he said.

Far from the Spring Statement providing stability, the IFS says the government is now at risk of months of speculation over what tax rises might come.

"With no sense of a tax strategy, we have no idea which way the chancellor might turn," adds Johnson.

Women hit harder than men by welfare reformspublished at 10:20 Greenwich Mean Time 27 March

10:20 GMT 27 March

By Robert Cuffe

Single women are more likely to lose out from the cuts to some welfare benefits than single men, according to the government's calculations.

More of them will lose out and, on average, their losses will be greater.

Women are more likely to be getting disability benefits than men and so they account for 44% of households losing out under the changes, losing just over £1,600 a year on average.

Single men account for 34% of those forecast to lose out, but their loss is about £150 smaller than the average single woman's.

These figures may underestimate the effect on women, according to Mary-Ann Stephenson, director of the Women’s Budget Group.

She points out that the government's calculations do not include "the impact on carers or likely impact on people who may have to drop out of the workforce to pick up the care of people whose benefits have been cut - most of whom will be women."

The majority of families gaining are also "single females" but their average gain would be just £380 per year, which is less than what single male or couples would gain.

Kim in north Wales says the chancellor has it "utterly wrong".

"I claim Pip and it's my lifeline", she tells Nicky Campbell on BBC Radio 5 Live.

"Pip is there to help disabled people and she's targeting us, and we are some of the most vulnerable people in the country. Pip is there to try and help you financially so that you can try to live a life."

Kim says she can work part-time - but is not well enough to work full-time. She's worried about the impact of losing her benefits.

Image source, PA Media

The Spring Statement is a game of two halves for the Resolution Foundation.

The economic think tank which focuses on low to middle income families says that on the one hand it is commendable that Rachel Reeves repaired public finances, she has done so at the expense of some of the most vulnerable in society.

Resolution Foundation research director James Smith says there is a strong case for the reform on health-related benefits and there are "genuinely helpful" elements of these changes such as support for people who want to get back into work.

However, it says that living standards for those on the lowest income in the UK are going to get worse over the coming five years. The Resolution Foundation calculates that income for the low paid will fall by 3% or £500.

What does the Spring Statement mean for you, your money and your job?

As part of Your Voice, Your BBC News, our business and politics teams are on hand to answer your questions today. To get in touch:

• Email: bbcyourvoice@bbc.co.uk, external
• WhatsApp: +44 7756 165803
• Or fill out this form

Image source, EPA

US President Donald Trump has announced new import taxes of 25% on cars and car parts coming into the US.

In our previous post, we brought you comments from Chancellor Rachel Reeves about the tariffs.

Internationally, here's how leaders are responding:

• Japan's Prime Minister Shigeru Ishiba said his government was considering "all kinds of counter-measures" in response to the tariffs
• China warns there are "no winners in a trade war", as the country's foreign ministry said "no country can achieve prosperity through imposing additional tariffs"
• Canada's Prime Minister Mark Carney called the tariffs a direct attack on Canadian workers, as the premier of Ontario, Doug Ford, said: "we're going to make sure that we inflict as much pain as possible to the American people without inflicting pain on the Canadian population"

• French Finance Minister Eric Lombard says the 25% tariff on imported cars is "very bad news" and the only solution is for the EU to raise it's own tariffs
• Spain's foreign minister, Jose Manuel Albares, said on Thursday that Trump's tariff announcement "is a good opportunity to look at the extraordinary cars that are made in Spain and Europe"
• Germany's Economy Minister Robert Habeck said there needs to be a "firm response to these tariffs from the EU", adding "it needs to be clear that we will not take this lying down"

Image source, EPA

Earlier, Chancellor Rachel Reeves warned that Trump's tariff announcement could be bad news for the UK economy.

She also said Britain is not planning "at the moment" to introduce retaliatory tariffs on the US.

Speaking to BBC Radio 4's Today programme, Reeves said the UK is in "intense negotiations" with the US over tariffs.

And in comments to Sky News today, the chancellor added that "trade wars are no good for anyone", warning they will result in "pushing up inflation after we've worked so hard to get a grip of inflation, and at the same time will make it harder for British companies to export".

"We are looking to secure a better trading relationship with the United States. I recognise that the week ahead is important. There are further talks going on today, so let's see where we get to in the next few days," she added.

Image source, Getty Images

More on US tariffs. Richard Hughes, chair of the OBR - the independent forecaster which essentially marks the government's homework - tells the BBC that in a worst-case scenario, US import taxes could wipe out the government's £9.9bn worth of headroom.

If, for example, the US chose to impose 20% in tariffs on trade partners around the world and the UK retaliates, that would reduce Britain's economic growth by 1%, the OBR estimates.

Consider that the UK economy expected to grow by 1.9% next year and that would be a huge hit.

"That kind of shock would be enough to wipe out the £10bn of headroom that Rachel Reeves has set aside," says Hughes.

He says the knock-on effect of economic growth effectively halving would be lower tax revenues, which could hit government spending plans and fuel inflation if prices rose.

The world keeps changing with Donald Trump in the White Housepublished at 09:32 Greenwich Mean Time 27 March

09:32 GMT 27 March

Chris Mason
Political editor

Image source, Getty Images

The world has changed, said the chancellor on Wednesday - and hours later it did, again.

When folk in government say the world has changed what they mean, at least in part, is Donald Trump is back in the White House and they can't be remotely certain what is going to happen next.

In the latest example, he set out in a news conference that Washington would be imposing an import tax or tariff of 25% on all cars America buys from abroad.

For the UK, the US is the second largest car export market after the EU, according to the Society of Motor Manufacturers and Traders.

The Office for Budget Responsibility, in its economic projections, looked at various scenarios of a hike in US tariffs.

The most severe, involving retaliation, the forecaster reckons, "would almost entirely eliminate the headroom against the fiscal mandate" – in other words, near nuke on its own all the budgetary shuffling and trade-offs Reeves has been juggling with in recent weeks.

The chancellor has told the BBC that there are "intense negotiations with US counterparts" including "on cars, steel and every other kind of tariff".

There are "a few more days left of those negotiations", Reeves said, adding: "We don't want to get into a trade war".

• Trump means uncertainty is the new certainty for the UK

"The government is at real risk of losing their moral compass," says Daisy Cooper, Treasury spokesperson for the Liberal Democrats.

She says her party is "very deeply concerned about the cuts that the government is talking about for people with disabilities and their carers".

Speaking earlier this morning to BBC Breakfast, Cooper says the cuts are happening as the government considers giving a "£5bn tax handout to Elon Musk and other US tech barons.

"If they did that I think that would be really unforgivable".

Dearbail Jordan
Business reporter

What impact could Donald Trump's tariffs on car imports into the US have on the UK economy?

Will it be "unhelpful", as IFS director Paul Johnson suggested this morning, or be more far-reaching?

Britain's exports of goods to the US make up around 2% of the UK's gross domestic product, according to the OBR, which says of that 0.2% comes from car exports.

Put another way, the UK shipped £8.3bn worth of cars to the US in the year to September 2024, the most recent government figures show. That compares to total US imports of cars and parts of $471bn (£365bn) last year.

US tariffs on cars and parts will have a bigger impact on the likes of Mexico which in 2024 exported $181.bn in cars and automotive products to America.

So in terms of what it means for the wider UK economy and government finance, US car tariffs are not, at this stage, catastrophic - but they are very unwelcome.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: "If, as seems likely, additional tariffs are to apply to UK-made cars, it's a blow to a long-standing and productive relationship."

Image source, EPA

It's been a busy morning at the BBC, as we heard from both Chancellor Rachel Reeves and Mel Stride, the Tory shadow chancellor, about yesterday's Spring Statement.

Here's what they had to say:

From Rachel Reeves we heard:

• She repeatedly emphasised that the welfare system is not working, and people need to be encouraged to get back into work
• She says wages are rising at twice the rate of inflation, and on average people will have £500 more in their pockets
• On US tariffs, she says they are negotiating "intensively" with the US in the next few days on trade
• She defended tax rises, as she said they put the public finances on firm footing, citing reduced NHS waiting lists

In response, Mel Stride said:

• The shadow chancellor said Reeves has "killed growth stone dead" and now people are paying the price
• He says his Conservative government laid the groundwork for changes that would have saved more and been fairer
• But he was pushed on those comments, with BBC Breakfast host Nina Warhurst pointing out that Labour inherited the economic conditions from the Conservatives
• Stride did not accept this assessment, and instead said Labour is to blame for the conditions the UK faces now

Stride says the Labour government is responsible for the economic issues the country is facing now.

He says the "reality was" that the electorate was told by Labour that they wouldn't be taxing and spending "like there was no tomorrow".

Labour went back on this promise "promptly" after getting into office, he says, "and we are all paying the price".

With that, his interview ends.

Mel Stride is challenged over the size of the national debt and the £22bn black hole which the Labour government says it inherited from the previous, Conservative government.

The shadow chancellor says the OBR has "debunked" claims of a £22bn black hole, to which Nina Warhurst replies the OBR does say the Conservatives weren't clear - and there was a black hole of around £9bn.

He goes on to attack the scale of Labour's borrowing.

BBC Breakfast host Nina Warhurst says the current government inherited these economic conditions from the Tories.

Stride says the Tory legacy was growing wages and bringing interest rates down.

Warhurst pushes back and says: "Sorry, this is disingenuous - inflation came down because of the raw price of energy came down."

Stride replies saying an energy price shock caused the inflation, but says the drop in prices came from government decisions.

Stride is asked if Reeves' budget is what Conservatives should have considered a decade ago.

He replies by saying that when the Tories were in office, they introduced major welfare reforms that saved £5bn. He adds that this was confirmed by the OBR, quoting the office as saying it meant 450,000 fewer people went on to long-term sickness and disability benefits.

He says the Conservatives laid the groundwork for changes that would have saved more and been fairer to the public.