LIVE: Welfare cuts and growth forecast slashed as Chancellor delivers Spring Statement

Thank you for following along with us. For more updates, listen to LBC live on Global Player and on our website.

The OBR is presenting its new forecasts to journalists. Watch it here:

Alex Veitch, Director of Policy and Insight at the British Chambers of Commerce told LBC News: "This was a statement we weren't expecting and a whole raft of new policies as such. But I think some of the things that were missing for us were about ways to boost investment for business and also importantly, exports. 

"We know that even a modest increase in exports has a really big impact on GDP growth, so we would have liked to see something more on that. And again, there were things to welcome, whether the focus on defence spending and the skills in construction funding and of course, planning reform as well.

"But you know, it's going to take business and government working together to deliver the promise of planning reform, and that has to come hand in hand with a tax environment that incentivizes businesses to grow."

In her Spring Statement, Chancellor Rachel Reeves has admitted the 2025 growth estimate for the UK has been halved.

It has been slashed from 1% from 2% by the government's official forecaster, the Office for Budget Responsibility.

Despite this, she claimed the OBR has upgraded its longer term growth estimates from 2026.

She sought to blame much of these economic woes on "increased global uncertainty".

Tom Clougherty, executive director of the Institute of Economic Affairs, said the Chancellor was right to cut spending rather than raise taxes again.

But he added that there was still "a sense of unreality" about it. 

"Policy is being determined by an arbitrary, moving target – a fiscal rule – rather than with any long term, principled strategy in mind," he said.

"When you look at the sluggish growth forecasts, and the enormous liabilities the state will encounter as the population ages, Britain's cycle of fiscal events feels a lot like rearranging the deck chairs on the Titanic. 

"Turning increased defence spending into an exercise in 'modern industrial strategy' suggests that the government still has too state-centric a view of economic growth – one that is almost certain to disappoint in the long-run. 

"Ultimately, we are going to need much more fundamental reform – going further and faster on the deregulatory, supply-side measures the government has begun to talk about; lifting the self-defeating burdens that have been imposed on business; and taking a long, hard look at what the state does and how it is funded."

The value of the pound has dropped even further following the chancellor's spring statement.

Sterling is down 0.5% - marking a two-week low of $1.288.

The slump is due to the OBR halving estimates for growth this year from 2% in October to 1%.

Rachel Reeves' Spring Statement is "delusional," Richard Tice has told LBC.

The Reform UK MP also questioned if the OBR was 'eating magic mushrooms' when making their forecast.

He said: "I think the OBR has been eating some form of magic mushrooms because although they've halved the growth forecast for 2025, they've suddenly dreamt up extra growth from what they were forecasting back in October for the remaining years of the parliament.

"It's completely delusional when everything this government has done in terms of increasing taxes, increasing regulations, will destroy growth and lead to lower growth."

Tice also said that the OBR would have a much-reduced role under a Reform Government.

"It's the Chancellor who is in charge with the Chancellor's advisers. This Chancellor is dictated by the OBR. That is delusional. It's got to be done the other way around," he told LBC.

Reeves opened up her speech saying she was proud of everything the government had achieved since coming into power.