UK Spring Statement: Modest measures, immodest growth outlook
- 27 March 2025 (7 min read)
KEY POINTS
Chancellor Reeves delivered her first Budget in October as one to underpin growth. Today’s Spring Statement was billed as an uneventful fiscal update and while Reeves delivered her statement in a combative style, there were in fact relatively few material announcements in keeping with her hopes.
A weaker near-term growth outlook and a widening of gilt yields contributed to the Office for Budget Responsibility (OBR) downgrading its initial finances projections by around £10bn per annum over the forecast horizon, including a downgrade to the public borrowing (PSNB) forecast for this year of £10bn and next by £12bn. However, a weaker growth forecast for 2025 was mitigated by firmer forecasts for future years, which minimised the impact on the finances over the medium term.
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