After a drawn-out and damaging lead-up to the Autumn Budget, Rachel Reeves is unlikely to deliver anything but a quiet fiscal event today.
3rd Mar 20260 917 1 minute read Simon Cairnes
The Chancellor will make her Spring Statement in the Commons today. It will stand in contrast to the damaging build-up to the Autumn Statement delivered a little over three months ago, which created uncertainty and instability across the economy.
So the content of today’ statement is unlikely to cause any dramas for the housing industry, although small tax changes have not been ruled out entirely.
Charlotte Sallabank, Tax Partner, Katten Muchin Rosenman
Any move which increases the overall tax burden would be politically sensitive. Speaking to the Telegraph, Charlotte Sallabank, Tax Partner at law firm Katten Muchin Rosenman, warns that any changes that raise the tax burden could “quickly be criticised as stealth tax rises.”
As part of the Statement today, the Office for Budget Responsibility (OBR) will publish updated forecasts covering growth, inflation and the public finances alongside the statement – all of which will have a bearing on future interest rate decisions.
Limited headroomUnusually, it will not publish a formal assessment of the Government’s progress against its fiscal rules, meaning the Chancellor’s headroom will not be explicitly set out, but economists are still expected to be able to extrapolate the figures.
According to the latest available data, GDP growth fell to just 0.1% in the final quarter of 2025, and even though inflation has come back down to 3% after an unexpected spike, it is still a long way above the Bank of England’s 2% target.
The combination of weak growth and stubbornly high inflation leaves the Chancellor limited room for manoeuvre and leaves open the possibility of future tax rises, especially if there is any deterioration in the outlook.
TagsAutumn Budget 2025 Spring Statement 2026 3rd Mar 20260 917 1 minute read Simon Cairnes Share Facebook X LinkedIn Share via Email
