LONDON — The British economy will grow only by 1% this year, half the rate previously anticipated, Treasury chief Rachel Reeves said Wednesday in a statement to lawmakers about the state of the public finances that also saw her flesh out plans to boost defense spending.

The government’s independent forecaster, the Office for Budget Responsibility, found an $18 billion shortfall.

Reeves has partly sought to fill that hole with welfare cuts that has caused widespread unease within the governing Labour Party amid a government-backed assessment that they could push 250,000 people, including 50,000 children, into poverty. She also announced measures to rein in tax avoidance and lowering the day-to-day costs of running government. — Associated Press