The Chancellor has delivered her Spring Statement for 2026, setting out updated economic forecasts and outlining the Government’s fiscal position for the years ahead.
Since the Chancellor has chosen to restrict major Government fiscal events to one per year – the Autumn Budget – no new tax or spending changes were announced.
Instead, the Spring Statement focused on growth expectations, borrowing rules and the wider economic outlook.
The key points were:
- Growth down: the Office for Budget Responsibility (OBR) has reduced this year’s growth forecast from 1.4% to 1.1% while slightly upgrading 2027 and 2028 forecasts from 1.5% to 1.6%. The growth forecast for 2029 remains unchanged at 1.5%
- Unemployment up: UK unemployment is now forecast to rise to 5.3% this year, up from the 4.9% forecast at the 2025 Autumn Budget, before falling gradually to 4.1% by 2030
- Fiscal headroom increased: The Government has slightly increased its fiscal headroom, with a bigger buffer on day to day spending (up from £21.7bn to £23.6bn) and on its debt target to £27.1bn
- Mortgage rate rise lower: Average interest rates on existing mortgages are expected to rise from 4.1% this year to 4.5% by 2030 – lower than forecast in the 2025 Budget
For more information on the Spring Statement and how it could affect you, please download our comprehensive Spring Statement 2026 guide.
