At first glance, Reeves’ latest Spring Statement might seem unremarkable, but there are several key points to note.
UK growth to slow to 1.1% in 2026
The Office for Budget Responsibility (OBR) has revised its economic growth forecast for 2026 down from 1.4% at the Autumn Budget to 1.1%.
The OBR described this as “further evidence of a loosening labour market and subdued business surveys.”
While delivering her Spring Statement, Reeves highlighted that the UK’s growth outlook has been upgraded to an average of 1.6% per year from 2027, with 1.5% projected for 2029 and 2030.
Headroom under the government’s stability rule is now expected to rise from £21.7bn in the November Budget to £23.6bn by 2029-30. Measured against the second fiscal, or investment, rule, this increases further to £27.1bn.