"In a speech lasting just over 20 minutes, Reeves stressed the importance of 'stability in an increasingly uncertain world', pointing to falling inflation and previous interest rate cuts as evidence that the cost-of-living squeeze on households is easing. However, beyond presenting updated forecasts from the Office for Budget Responsibility (OBR) and criticising opposition parties, she unveiled no new tax or spending measures."
"The OBR has revised down its forecast for UK economic growth in 2026 to 1.1 per cent, weaker than the 1.4 per cent predicted in November. The downgrade comes amid soft domestic demand, geopolitical instability and renewed energy market volatility following military escalation in the Gulf region. Rising oil and gas prices threaten to complicate the inflation trajectory, particularly if disruption to global supply chains persists."
"Unemployment is forecast to peak at 5.3 per cent later this year as weaker labour demand feeds through the economy. The rate is then expected to decline steadily, ending the parliamentary term at 4.1 per cent, lower than at the start. The Chancellor framed this as evidence that the labour market remains fundamentally strong despite short-term headwinds."
Chancellor Rachel Reeves delivered a 20-minute Spring Statement focused on economic stability amid Middle East conflict and energy price concerns. The Office for Budget Responsibility downgraded UK growth forecasts for 2026 to 1.1% from 1.4%, citing soft domestic demand and geopolitical instability. Unemployment is projected to peak at 5.3% this year before declining to 4.1% by the end of the parliamentary term. Reeves emphasized falling inflation and previous interest rate cuts as evidence the cost-of-living crisis is easing, though rising oil and gas prices pose renewed inflation risks. No new fiscal measures were announced, as the government committed to holding only one annual fiscal event during the autumn Budget.
Read at Business Matters
Unable to calculate read time
Collection
[
|
...
]