Core Viewpoint - The decline in the UK economy poses significant challenges for the government's spending plans, which rely on economic growth for funding [1] Economic Performance - The UK GDP fell by 0.3% in April, ending a period of impressive growth in the first quarter [1] - This downturn is seen as unfavorable for the Chancellor of the Exchequer, who has outlined substantial spending commitments [1] Government Spending Plans - The Chancellor's spending commitments include billions of pounds allocated for housing, digital infrastructure, and defense [1] - The sustainability of these commitments is contingent upon reviving the economy and increasing GDP growth to generate more tax revenue [1] Potential Policy Responses - If the economic situation does not improve, the Chancellor may be forced to implement new tax increases later in the year [1]