Tough fiscal measures 'in the offing' as investors expect Reeves to cut spending in Spring Forecast

Forecast on 26 March

UK Chancellor Rachel Reeves is expected to rein in government spending to avoid breaching fiscal rules as investors anticipate a swathe of measures in next week’s Spring Forecast.

The Spring Forecast, scheduled for 26 March, will see the Office for Budget Responsibility (OBR) publish its revised forecasts for the UK economy and public finances. Reeves will then respond to the forecast in the House of Commons, but some investors are already pricing in additional measures from the chancellor designed to cut spending and ensure the government does not breach its fiscal rules. The pressure to cut costs is even greater after data from the Office for National Statistics (ONS) today (21 March) showed government borrowing – the difference between total public sector sp...