What time is the Spring Statement and what might be in it?

Chancellor Rachel Reeves is scheduled to present the Spring Statement on Tuesday, providing an update on the UK’s economic outlook and government plans. This announcement will be accompanied by the publication of updated figures on growth, inflation, unemployment, government spending, and tax revenue projections for the coming years. Notably, these forecasts will exclude potential effects from recent oil price increases resulting from strikes in Iran.

While the Spring Statement is not as significant an event as the annual Budget, it still holds considerable influence over future government decisions about taxation and public spending. The Office for Budget Responsibility (OBR), an independent organization that assesses government financial plans, will release its latest economic forecasts after Reeves’ speech in the House of Commons. The OBR’s twice-yearly reports offer important insights into the expected performance of the British economy, although this year’s statement will not include an official evaluation of whether the government’s fiscal rules are likely to be met. Instead, these assessments will revert to being published with the Budget.

At the previous Budget in November, the OBR had indicated that the government was on track to meet two key fiscal targets: not borrowing to fund day-to-day public expenditures by the end of the current Parliament, with a £21.7 billion “headroom” buffer, and reducing government debt relative to national income. Even though the March statement will omit an official “headroom” update, independent economists are expected to analyze the government’s financial position. The OBR’s report will incorporate policy changes introduced since November, with expectations that forecasts for borrowing and inflation may be lowered, while growth and employment outlooks could deteriorate.

During the statement, Reeves is anticipated to emphasize that the government has made sound economic decisions amid global uncertainty, stating: “Because of the decisions we have already taken, we have a stronger and more secure economy.” However, she is not expected to unveil major policy moves like tax or spending changes, as such announcements tend to be reserved for the autumn Budget to reduce ongoing speculation. Since taking office in July 2024, the Labour government has prioritized economic growth, but there remain concerns about the pace of expansion. GDP increased by only 0.1% in the final quarter of 2025 and 1.3% over the year, slightly below expectations. Inflation has eased to 3%, prompting predictions of potential Bank of England interest rate cuts, though recent oil price rises could complicate this outlook. Meanwhile, wages continue to grow faster than inflation, with average pay rising 4.2% excluding bonuses in the latest quarter. Reeves expressed confidence that 2026 would be the year when the positive effects of government reforms begin to materialize, acknowledging there is still work to be done. Meanwhile, business leaders remain concerned about the increased tax burden, including the employer National Insurance hike introduced the previous April, which has raised hiring costs

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