Today saw Chancellor of The Exchequer, Rachel Reeves, deliver her Spring Statement. Typically, we provide you with a detailed round-up of all the updates announced by the Chancellor, including any policy changes.
Truth be told though, there isn’t much for us to update you on today – this year’s Spring Statement was more of a whistle-stop tour of how the economy is doing rather than a platform to announce changes to policy or plans. This prompted criticism from shadow chancellor Mel Stride, who branded Reeves’s speech a ‘surrender statement’.
The low-key nature of this year’s statement appears to be by design – by keeping major fiscal announcements and overhauls to the annual Autumn Budget, ministers hope to instil greater confidence in the economy by avoiding a second period of speculation and uncertainty.
This decision could also be influenced by the increasingly fractious geopolitical background. Something important to remember on that front: the OBR’s forecast was being finalised just as conflict in the Middle East escalated, meaning the prospect of consequent energy price rises are not accounted for.
That said, the Chancellor’s Statement did at least provide us with some insights into what we can expect over the rest of the year, and indeed the years following. So, here is a brief overview of the key headlines from the 2026 Spring Statement.
Highlights from the Spring Statement
GDP Growth Forecast
GDP growth is first expected to slow in 2026 – 1.1% as opposed to 1.4%. However, it will later speed up to 1.6% in 2027 and 2028, and 1.5% in 2029 and 2030.
Reeves also stated that GDP per capita should grow by 5.6% by the end of Parliament.
Inflation to fall faster than originally expected
The OBR predicts that inflation will reach the 2% target faster than originally expected, with drops forecast as follows:
- From 3.4% in 2025 to 2.3% in 2026
- To 2.0% from 2027
Originally, the OBR had predicted a 2.5% rate in 2026.
However, as mentioned previously, today’s OBR forecast announcements were finalised before the escalation of conflict between the US, Israel and Iran.
Unemployment to Reach 5.3%
The OBR expects unemployment rates to hit 5.3% in 2026, rather than 4.9% as previously reported. After reaching this peak, it should gradually taper back down to 4.1% by 2030.
Fiscal ‘Headroom’ Increased
Fiscal ‘Headroom’ – the amount of buffer the government has before breaking its financial rules – has increased from £21.7bn to £23.6bn. That may sound like a lot, but the Chancellor conceded that there are always risks that threaten to absorb that safety net – the latest conflict in the Middle East being only one such example.
As ever, if you have any questions about what this could mean for you and your money, please do get in touch.
Charlie Sturgess
Charlie is a Designer in Danbro's Marketing team. He is responsible for producing creative assets and content for use across the group's various channels.
His background is varied, having studied Design and English, and worked in the financial services as an administrator.
Outside of Danbro, Charlie can be found up a climbing wall, or watching the F1.