Reeves says her plan is working as growth forecast cut for this year

"Reeves insisted the government had 'the right economic plan' for the country, adding it was the government's duty to 'secure our economy against shocks and protect families from the turbulence that we see beyond our borders'."

"The OBR now expects inflation - the rate at which prices rise - to fall to 2.3% through the year, down from its estimate of 2.5% in November, before reaching the Bank of England's target rate of 2% by the end of 2026."

"The forecasts were made before the conflict in the Middle East broke out, and the OBR said such an outbreak could have a 'very significant' impact on the global and UK economies."

Chancellor Rachel Reeves presented her Spring Statement, highlighting that the government's economic plan is functioning despite global uncertainty. The Office for Budget Responsibility reduced its 2026 growth forecast to 1.1% from 1.4%, though upgraded estimates for 2027 and 2028 to 1.6%. Inflation is now expected to fall to 2.3% this year, down from 2.5%, reaching the Bank of England's 2% target by end of 2026. However, recent oil and gas price increases raise concerns about inflation potentially rising again, which could limit interest rate cuts. The unemployment rate is projected to peak at 5.3% in 2026, and GDP per person growth is forecast at 1.1% annually through 2030. The OBR cautioned that Middle East conflicts could have very significant economic impacts.

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