Rachel Reeves Sets Early March Date for Spring Statement as OBR Prepares Forecast
The UK government has scheduled an early spring statement for 3 March, with the Office for Budget Responsibility (OBR) tasked to prepare forecasts for the economy and public finances aimed at providing stability and certainty. This statement follows the November budget where Chancellor Rachel Reeves raised the fiscal headroom to £22bn. Notably, the OBR will not assess performance against the fiscal mandate, but will instead provide an interim update on the economy and public finances.
Recent leaks and tax speculation prior to the autumn budget were heavily criticised and blamed for negatively affecting consumer spending and business investment. Economic data shows the UK economy contracted in October, with the Bank of England expecting flat growth in the fourth quarter. The private sector is reported to be weakening, with firms delaying spending and hiring decisions.
In the interim, the OBR chair, Richard Hughes, has resigned and a replacement has yet to be appointed. Despite this, forecasts are expected to be issued before a new chair takes the role. The Treasury will respond to the OBR's March forecast with a parliamentary statement, continuing with the plan to deliver one major fiscal event per year.
Additionally, both the Treasury and the OBR are conducting inquiries into leaks related to budget documents and associated disclosures, aiming to strengthen confidentiality in future budget processes.
