Cliff Notes – When is the spring statement?
- Chancellor Rachel Reeves will provide an economic update on 26th March, Wednesday, following a fiscal statement made last October, amid growing speculation regarding potential breaches of her borrowing rules.
- The Spring Statement, distinct from a formal budget, is expected to address public finance gaps and may involve extending tax reliefs and cuts amidst tight fiscal constraints.
- Economic pressures, including a recent contraction and rising inflation, may necessitate welfare cuts or other measures as Ms Reeves aims to maintain fiscal responsibility throughout her term.
When is the spring statement – and what do you need to know about it?
Chancellor Rachel Reeves is poised to deliver an update on the health of the British Economy on Wednesday.
The Chancellor will respond to the forecast in her Spring Statement in the House of Commons. The Spring Statement is expected to largely be a response to the OBR’s forecast but there is speculation that there will also be announcements on spending and, possibly, tax, to ensure the fiscal rules are met.
The spring statement is not a formal budget – as Labour pledged to only deliver one per year – but rather an update on the economy and any progress since her fiscal statement last October.
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While it’s not billed as a major economic event, Rachel Reeves has a big gap to plug in the public finances and speculation has grown she may have to break her self-imposed borrowing rules.
Here’s everything you need to know about the Spring statement coming this Wednesday.
What is the spring statement?
The spring statement is an annual speech made by the chancellor in the House of Commons, in which they provide MPs with an update on the overall health of the economy and Office for Budget Responsibility (OBR) forecasts.
It is one of two major financial statements in the financial year – which runs from 1 April to 31 March.
The other is the autumn budget, which is a much more comprehensive financial event in which the chancellor sets out a raft of economic policy for the year ahead.
Typically, the spring statement – which was first delivered by ex-chancellor Phillip Hammond in 2018 – gives an update on the state of the economy, and details any progress that has been made since the autumn budget.
The Chancellor of the Exchequer will present her Spring Statement 2025 to Parliament on Wednesday 26 March 2025.
What does the OBR have to do with the Spring Statement?
On 26 March 2025, the Office for Budget Responsibility (OBR) will publish revised forecasts for the economy and public finances. The OBR is the independent public finances watchdog, which produces the official forecasts for the economy and public finances used by the Chancellor. The OBR must produce two forecasts each financial year.
What are the UK’s fiscal rules?
The UK’s fiscal rules (also known as the fiscal targets) focus on the government’s day-to-day budget and public sector net financial liabilities (PSNFL). It measures the difference between governments day-to-day spending on running public services, grants and administration and government revenues from taxes and other sources, but significantly excludes spending on investments.
