Chancellor Rachel Reeves delivered the Spring Statement this afternoon, offering an updated snapshot of the UK’s economic position. Her message centred on stability, noting improvements in inflation, borrowing and living standards despite global uncertainty.
The Office for Budget Responsibility (OBR) also released new forecasts alongside the Statement, outlining how the economy is expected to perform over the coming years:
- Slower growth expected this year: The 2026 GDP forecast has been reduced to 1.1%, down from 1.4%.
- Inflation easing: Price pressures are continuing to decline, with inflation anticipated to return to more typical levels later in 2026, helping to ease the cost burden on households.
- Stronger outlook beyond 2026: Growth projections for 2027 and 2028 have been revised upward to 1.6%, signalling a more resilient medium‑term path.
- Borrowing improving: Government borrowing is now expected to be £18 million lower than previously estimated in the Autumn Budget.
In summary
As expected, this Spring Statement introduced no new tax measures. Instead, it reinforced the Government’s fiscal stance and reflected the latest economic forecasts. For details on existing tax changes from the Autumn Budget, see our recent guide.
To maximise current tax planning opportunities, explore our Year End Tax Planning Guide.
