“The Spring Forecast reiterated the Government’s recent announcements and provided an update to the OBR’s main forecast. The aim was to demonstrate that a consistent policy can eliminate the need for a secondary fiscal event, allowing the Government to focus solely on the Budget later in the year.
“Despite weaker growth and a slew of other spending increases made since the Autumn Budget, the Chancellor’s headroom rose from £21.7bn in November to £23.6bn driven by stronger forecasts for public sector revenues.
“Updated OBR forecasts retain a relatively optimistic stance on growth. The OBR continues to expect to see a rebound in growth in 2027, with it accelerating to 1.6%, well above most forecasters’ predictions of 1.4%. Its assumptions for productivity and long-term growth potential are also relatively high, which opens the way for more forecast downgrades in the future.”
