Rachel Reeves confirms the spring statement of March 3 to restore economic certainty
Rachel Reeves has confirmed she will deliver the pre-spring statement on March 3, as the Treasury continues to restore confidence after a year in which businesses were accused of long-term tax speculation for weakening the UK economy.
In announcing the date, the Ministry of Finance said the chancellor had formally requested the Office for Budget Responsibility to prepare updated forecasts for the economy and public finances. The move is intended to provide “stability and certainty” following widespread criticism of the November budget extension, which many business leaders say has stalled investment and hiring decisions.
Reeves has faced constant criticism during the months of leaks, briefings and policy flights leading up to the autumn budget, with economists and industry groups arguing that the uncertainty has contributed to lower consumer spending and private sector activity. Official data later showed the economy contracted unexpectedly in October, while the Bank of England warned that growth was close to slowing by the end of the year.
The business survey also pointed to a sharp slowdown in activity towards the end of the year, with firms delaying spending decisions until greater clarity emerges about tax and regulatory changes. Economists said the uncertainty was exacerbated by the limited headroom Reeves initially left in opposition to his own fiscal policies, increasing the risk that even a small deterioration in public finances could force tax increases or spending cuts.
In November’s budget, the chancellor sought to address those concerns by doubling his treasury budget to £22bn, saying the move would protect public finances from future shocks and reduce the likelihood of sudden policy changes. He also signed a change in approach, ensuring that the government will host the biggest financial event of the year.
Under that framework, the Treasury said it would respond to the OBR’s March forecasts with a formal statement to parliament instead of a full budget. Officials said the approach would help provide greater predictability to households and businesses, supporting the government’s plan to boost broad-based growth.
The spring forecasts are expected to be published before a permanent replacement is appointed for Richard Hughes, who stepped down as OBR chairman after sensitive budget documents were accidentally published online ahead of Reeves’ November statement. Both the Treasury and the OBR are continuing internal investigations into the leak.
Reeves has previously acknowledged the damage caused by speculation ahead of the autumn budget and has promised to improve discipline on financial announcements. The early March date is seen within Whitehall as an attempt to draw a clear line under that episode and to reset relations with businesses and financial markets ahead of the new financial year.
