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""The world has changed" is the mantra we are hearing from the government.

It is a phrase designed to explain and justify the chancellor's argument on Wednesday in what is known as her Spring Statement.

The Conservatives are branding it an "emergency Budget", which ministers insist is nonsense, but it is certainly true it is a bigger event than it was expected to be just a few months ago.

We won't see Rachel Reeves standing on the steps of 11 Downing Street waving a red box around and it will be shadow chancellor Mel Stride responding to her in the House of Commons, rather than the leader of the opposition as happens on Budget Day.

But other elements of the day will have a Budget day feel, not least in the overall vibe of whether Parliament and the country feel confidence in the government's economic prospectus.

The backdrop is pretty bleak.

When Labour won last year's general election, they said the first of their "missions" was to "kickstart economic growth".

The thing is, there isn't any - the economy is flatlining.

Plus, inflation is up and government borrowing costs are up.

Then there are the big-picture challenges: the UK has an ageing population, the benefits bill is going skywards, the dangerous international picture is demanding more money for defence and the country is saddled with huge debt, which attracts huge debt interest payments.

Add to that the wild unpredictability of US President Donald Trump, the looming prospect of tariffs and the vast uncertainty over Ukraine's future and European security.

All of which prompts the question: if the world really has changed, how much appetite now or in the future might Labour have for a really far-reaching re-examination of how it approaches government?

With big and potentially unpalatable trade-offs looming, what alternatives could there be?

There are loads of ideas it could explore, from the left, the right and everywhere in between. But let's take a look at a few, all floated publicly by some on their own side."

https://www.bbc.co.uk/news/articles/c1mn4nn01gmo

DYOR

To drop asylum hotel provider..

The government will end a contract worth £2bn a year with one of the largest providers of hotel asylum accommodation after the Home Office said an audit identified concerns about the company's performance.

Stay Belvedere Hotels (SBHL) provides around a quarter of Home Office asylum accommodation across 51 hotels in England and Wales, and also operates Napier Barracks in Kent - which houses people awaiting asylum decisions and is due to close in September.

The Home Office said a review of SBHL - which signed a contract with the previous government in 2019 - found issues with its behaviour as a supplier, though did not provide specific examples.

BBC News has approached the company for comment.

SBHL's website says it offers a range of pastoral and welfare services that exceed the requirements of its contracts and ensure those staying in its hotels are treated with dignity.

Border security and asylum minister Angela Eagle said the decision had been taken because of greater oversight of asylum accommodation.

"We have made the decision to remove Stay Belvedere Hotels from the Home Office supply chain and will not hesitate to take further action to ensure Home Office contracts deliver for the UK," she said.

The earliest point which the Home Office can exit the contract with SBHL without payment of break cost is in September of next year.

It is unclear where those they are housing will go when it does end.

The latest published immigration statistics from December 2024 show there were 38,079 asylum seekers in hotel accommodation, lower than the peak of 56,042 at the end of September 2023.

Ministry of Justice data also shows that almost 42,000 asylum seekers are waiting for an appeal hearing after their initial claims were rejected by the Home Office.

The government says it is committed to ending the use of hotels to house asylum seekers but, speaking to Times Radio on Tuesday, Housing Minister Matthew Pennycook said he would not provide a "timeline" on achieving that goal.

The government is looking at plans for failed asylum seekers whose appeals have been exhausted to possibly be sent to the Balkans.

More than 5,000 migrants have arrived in the UK after crossing the Channel on small boats so far this year, according to latest figures.

In 2024 as a whole, 36,816 were detected making the dangerous crossing in small boats.

DYOR

..with a robins f@rt for this Spring Statement...

The chancellor will give an update on her plans for the UK economy and an economic forecast when she makes her Spring Statement, on Wednesday 26 March.

Rachel Reeves has previously ruled out further tax rises, but faces difficult choices because of the performance of the UK economy and world events.

What is the chancellor expected to announce?

Reeves has committed to one major economic event each year - the Budget.

As a result, government sources have been keen to stress that the Spring Statement is not a major financial event.

Reeves has ruled out "tax and spend" policies, signalling that she will neither raise taxes nor government budgets.

However, with the government under pressure over its finances, she is expected to announce spending cuts and some big changes aimed at saving money have already been announced.

Welfare spending

Spending cuts aimed at making savings of £5bn year by 2030 from the welfare bill were outlined last week.

Policies include stricter tests for personal independence payments, affecting hundreds of thousands of claimants, and a freeze on incapacity benefits. More detail on the impact of the cuts are expected on Wednesday.

Civil service

The chancellor has pledged to reduce government running costs by 15% by the end of the decade, with about 10,000 civil service jobs expected to go.

Sectors such as human resources, policy advice, communications and office management are expected to be affected by the cutbacks.

Aid and defence

In setting out her choices the chancellor is likely to argue the "world has changed".

The government has said it will increase defence spending to 2.5% of national income by 2027. We should get more details on how this money will be reallocated from international aid spending.

Tax changes

Tax rises have been repeatedly ruled out by the chancellor, but UK taxes on big firms could be changed as part of a deal to avoid US trade tariffs.

Reeves has revealed talks are "ongoing" about tweaks to the 2% Digital Services Tax (DST), which raises about £800m a year from global tech giants such as Amazon and Meta.

DYOR

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