Spring Statement 25: OBR fiscal outlook has 'deteriorated' since October as it delivers 'grim' economic forecast

Notes long-term geopolitical risks

The underlying fiscal outlook for the UK has “deteriorated” since the government’s Autumn Budget, according to the Office for Budget Responsibility's (OBR) assessment of the country’s current economic and fiscal outlook.

Released today (26 March), following Chancellor Rachel Reeves' Spring Statement in the House of Commons, the OBR's analysis outlined a combination of higher debt interest payments and weaker-than-anticipated receipts that have wiped out Reeves' previous £9.9bn fiscal headroom, resulting in a deficit of £4.1bn before accounting for new policies.  However, the net £3.2bn savings generated from cuts to welfare budgets, which the OBR said will impact three million families in the UK, coupled with the boost from planning reforms and reduction in day-to-day spending, are expected to offset thi...