"Reeves said new forecasts from the independent Office for Budget Responsibility (OBR), published alongside her statement, showed that, inflation is down, borrowing is down, living standards are up and the economy is growing. This government has restored economic stability, she claimed, in a deliberately low-key statement that as expected contained no substantive policy announcements."
"Reeves conceded that GDP growth is now expected to be slightly slower this year, however, down to 1.1% from the previous forecast of 1.4%, after weaker than expected data in the final quarter of 2025 but stronger in future years, at 1.6% in 2027 and 2028, and unchanged at 1.5% in 2029 and 2020."
"Despite instructing the OBR not to judge her against her fiscal rules at this spring forecast, Reeves stressed that her buffer or headroom has increased in its latest projections, to 23.6bn from 21.7bn at the time of the November budget. This improvement has been aided by lower gilt yields, or borrowing costs, though these have been rising again in recent days as investors bet on resurgent inflation."
Chancellor Rachel Reeves presented a spring forecast showing mixed economic signals. While inflation and borrowing have decreased and living standards have improved, GDP growth for this year was downgraded to 1.1% from 1.4%, attributed to weak final quarter 2025 data. The Office for Budget Responsibility predicts unemployment will peak at 5.3% this year before declining to 4.1% by the forecast period's end. Growth is expected to strengthen in future years at 1.6% in 2027-2028. Reeves emphasized her fiscal buffer has increased to £23.6bn, aided by lower gilt yields. The chancellor remains in close contact with the Bank of England governor regarding rising energy prices and Middle East tensions affecting crude oil costs.
Read at www.theguardian.com
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