When is the Spring Statement and what might be in it?

Chancellor Rachel Reeves will give an update on her plans for the UK economy, when she delivers the Spring Statement on 3 March.

The latest estimates for growth, inflation, unemployment, government spending and tax income over the next few years will be published alongside the statement.

Although it is not a major event like the Budget, the Spring Statement can influence government decisions on whether to raise or cut taxes and spending in the future.

The Spring Statement outlines the latest economic forecasts from the Office for Budget Responsibility (OBR), which will be published in full after Reeves has delivered her speech in the Commons.

The OBR is the independent body that monitors the government's spending plans and performance, and it produces forecasts twice a year.

These give an indication of how the economy is expected to perform, and whether the government is likely to meet the tax and spending rules it has set.

The two main rules are:

• Not to borrow to fund day-to-day public spending by the end of this parliament
• To get government debt falling as a share of national income by the end of this parliament

At the time of November's Budget, the OBR said Reeves would meet the first measure with £21.7bn in reserve - an amount often referred to as "headroom".

The OBR forecasts matter because the government may cut spending or raise taxes if it is at risk of not meeting its rules.

However, for this year's Spring Statement, there will be a difference.

Historically, the OBR has assessed whether the fiscal rules will be met twice a year, in spring and autumn. However, in last November's Budget, the government said this assessment by the OBR would now be made only once a year at the autumn Budget.

The 2026 Spring Statement will take place on 3 March.

We don't know exactly what time Reeves will begin her speech in the Commons, but it is likely to be shortly after midday.

When Reeves finishes speaking, the Treasury will publish the OBR's forecast.

The OBR is independent of the government and usually publishes its own reports. However, last year the OBR's analysis was released mistakenly before the chancellor had delivered her Budget statement in the House of Commons.

This error led to the resignation of the OBR's chairman, Richard Hughes.

Following a security review, the government has said the OBR's March forecast will be published by the Treasury using its gov.uk platform.

After Reeves has spoken, the opposition, likely to be either Conservative leader Kemi Badenoch or shadow chancellor Mel Stride, will respond.

Reeves is not expected to announce any major policy decisions such as changes to taxes or spending.

The chancellor only wants to make major announcements once a year, normally at the autumn Budget. The government wants to avoid constant waves of speculation over tax and spending measures.

Uncertainty over possible measures in last autumn's Budget has been blamed for affecting both businesses and households

However, changes could be announced in March. Last year's statement confirmed details of changes to benefits, although some of these were reversed later in the year.

When the Labour government took power in July 2024, it made boosting economic growth its top priority.

However, many economists and politicians are concerned that the UK economy is not growing fast enough.

GDP grew by 0.1% in the last three months of 2025, which was slightly less than expected. It grew by 1.3% over the whole of the year.

Inflation - the rate at which prices are rising - has cooled after peaking at 11.1% in October 2022, but it is still above the Bank of England's target of 2%.

Prices rose by 3% in the year to January, the lowest inflation rate since March 2025. This decline in inflation has led analysts to expect the Bank of England to cut interest rates from 3.75% when it meets next month.

Unemployment has been rising slowly, and hit 5.2% in the three months to December which was the highest rate for nearly five years.

Wage growth has been slowing, but average pay has still been rising faster than inflation. In the three months to December, wages excluding bonuses grew at an annual rate of 4.2%.

Reeves said in February that 2026 would be the year the British public start to feel the positive impacts of Labour's changes.

"Is there more to do? Absolutely. But we've created the conditions for growth and I am confident this will be the year we will see the results of that," she said.

Business owners have consistently complained about the rising tax burden, with particular concerns about how the chancellor's hike in employer National Insurance contributions, which took effect last April, drove up the cost of hiring for firms.