- Chancellor's economic plan is the right
one as Spring Forecast shows inflation
falling and borrowing down, while living
standards and the economy grow, with families set to be
£1000 better off.
- Forecast shows borrowing is down by nearly £18
billion compared to Autumn and
headroom against the stability rule has
increased to almost £24 billion
- The Chancellor said her economic plan is even more
important in a world that has become yet more
uncertain, to secure the economy against shock and protect
working families
-
Chancellor's economic plan is the right
one as Spring Forecast shows inflation
falling and borrowing down, while living
standards and the economy grow, with people set to
be £1000 better off.
-
Forecast shows borrowing is down by nearly £18
billion compared to Autumn and
headroom against the stability rule has
increased to almost £24 billion.
-
The Chancellor said her economic plan is even more
important in a world that has become yet more
uncertain, to secure the economy against shock and
protect working families.
The Spring Forecast has shown
that the government's economic plan to cut the
cost of living, cut national debt and grow the economy, is the
right one. .
The Chancellor today set out how this government
is building a stronger and more secure economy that makes
every part of Britain better off. Through stability in the
public finances, investment in infrastructure and reform to the
economy, this government's economic plan is changing Britain for
the better.
Cutting the cost of living
The OBR's forecast shows inflation, borrowing and debt
interest are all falling while
investment is rising. It now forecasts that
inflation will return to target in the second half of this year
– earlier than forecast in November – and delivering on
the government's plan to ease pressure on
households.
The decisions the Chancellor took at the last Budget
to ease the cost of
living, including reducing people's energy
bills by £150 and freezing rail
fares, are specifically expected to bring
inflation down by 0.4ppt in 2026-27.
Easing the cost of living is the government's number one
focus. That's why we are boosting the minimum wage for
millions of workers, fully-funding 30 hours of free childcare,
rolling out free breakfast clubs and helping family incomes by
removing the two-child limit.
Cutting borrowing
The forecast shows borrowing is
down by nearly £18 billion compared to the Autumn,
with borrowing this year set to be the lowest in six years and
falling below the G7 average for the first time in
22 years.
Already, we are expected to spend nearly £4bn less on debt
interest next year than was forecast in the
Autumn – money that can instead be spent on
the things people rely on like our NHS and public
transport.
The government is also reducing wasteful spending and
driving efficiencies so that tax payer money can
be spent wisely. This year was the
lowest drawdown on the government's contingency pot
for day-to-day spending in almost
a decade, showing they are keeping public
finances stable.
The forecast shows headroom to the stability rule has increased
to almost £24 billion.
The Government's responsible approach to public
spending means the Spring Forecast also reflects the recently
announced £3.5bn of new funding for DfE in 2028-29 to
support ambitious reforms to SEND. This
includes over £1.8 billion
in additional funding for Devolved
governments through the Barnett formula.
Growing the economy
The OBR's forecast shows GDP per person is now set
to grow more than was expected in the Budget – with growth of
5.6% over the Parliament. Despite the global uncertainty,
Britain's economy remains strong
– with faster growth than any other European
country in the G7 in 2025.
The driving purpose of growing the economy is
to make every part of Britain better off. The OBR has
forecast that people will be over £1,000 a year better off
after inflation, delivering on the
government's priority to build an economy that makes
working people better off.
