Spring Statement buys time, government must use it, says IPPR

Responding to the Spring Statement, Harry Quilter-Pinner, IPPR executive director, said: 

“The Spring Statement delivered what many expected: a slight adjustment to the economic forecast, not a major fiscal reset. With less than 100 days since the last event, there were no dramatic revisions, and the Chancellor's decision to double headroom has done its job, cushioning small forecast changes without forcing tax rises or spending cuts. 

“But lower net migration poses a medium-term risk to public finances, while renewed conflict in the Middle East risks pushing up energy prices and adding to inflationary strain on households and businesses. 

“The real test now is not short-term headroom but building on the economic momentum. The Spring Statement has bought the government time, it must now use it. That means focusing on broadening industrial strategy beyond energy into defence and advanced manufacturing, and doubling down on a 'war on bills' to tackle the cost-of-living crisis.”