On 3rd March 2026 the Chancellor of the Exchequer, Rachel Reeves, presented an update on the UK’s economic performance amidst growing national and international uncertainty. Concurrently, the Office for Budget Responsibility (OBR) published an update of its Economic and Fiscal Outlook. This supplement summarises the key announcements made and potential implications for London’s economy.
Key points
- The Spring Statement does not include major new announcements related to tax changes, public spending or policy initiatives. Nonetheless, it provided the OBR the opportunity to update its forecasts in light of more recent data on immigration trends, GDP and other important parameters.
- The updated forecasts do not present a different picture of the UK’s future economic situation. The country continues to suffer from feeble productivity and economic growth, inflation remains higher than the 2% target, the national debt remains relatively high, and the tax take is high by historical standards. Moreover, the forecasts do not factor in the potentially adverse effects of recent events such as the Middle East conflict and the Supreme Court’s decision on President Trump’s tariffs.
- All this points to a precarious economic environment for both London and the UK, with the capital potentially bearing a disproportionate burden of any resulting inflationary pressures and economic slowdown.
