Spring Statement 2026 – Update

Published: March 2026

Chancellor Rachel Reeves delivered her Spring Statement update on Tuesday which outlined updated growth and inflation figures.

Growth forecasts for 2026 have been downgraded from 1.4% to 1.1%, but for 2026 and 2027, the growth forecast has been upgraded to 1.6%.  In addition, with tax receipts set to hit a “historic high” by 2030/31 forecast, there is more headroom for the Chancellor than anticipated, which has also been boosted by lower borrowing costs.

With inflation forecasted to average 2.3% in 2026 and then reach 2% by the end of 2027, in normal economic conditions, this could signal potential cuts to interest rates in the UK. However, with the conflict in the Middle East starting just days before the Spring Statement, the Office for Budget Responsibility would not have the time to assess the impact on the economy and the likely rises to energy prices.

We saw gas prices spiking which could put pressure on household energy bills from July, after the next price cap period of 1 April to 30 June 2026.

Whilst the Spring Statement was muted compared to recent Budgets, for which we should probably be thankful (!), the events in the Middle East, and the dramatic swings in certain asset prices that have resulted, highlights the importance of a diversified investment strategy and regular reviews, ensuring sufficient savings are set aside for short-term needs and use of tax wrappers to build wealth efficiently.

If you would like to book in a call with one of our Chartered Financial Planners to discuss your arrangements, please do get in touch on 01223 233331 or email info@mmwealth.co.uk.

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