On Tuesday 03 March 2026, the Chancellor delivered the 2026 Spring Statement, providing an update on the UK economy and the latest forecasts from the Office for Budget Responsibility (OBR).
As expected, the Statement was largely an economic update rather than a major policy event, with no significant new tax announcements or surprises for businesses. Instead, the focus was on the latest economic outlook and the government’s longer-term plans to support stability and growth.
Economic Forecasts
The OBR’s updated forecasts point to gradual improvement in the UK economy, although growth is expected to remain modest in the near term.
Some of the headline figures announced include:
- Economic growth of around 1.1% in 2026, with growth expected to strengthen to around 1.6% in both 2027 and 2028.
- Inflation forecast to fall to around 2.3% in 2026, moving closer to the Bank of England’s 2% target, and expected to stabilise at around 2% from 2027 onwards.
- Unemployment projected to peak at around 5.3% in 2026 before gradually declining again in the following years.
Overall, the message from the Chancellor was one of continued progress towards lower inflation and improved economic stability, albeit with growth remaining relatively subdued in the short term.
As with any economic forecast, these projections are based on the information available at the time they were produced.
Recent global developments mean there is a degree of uncertainty around the outlook, particularly in areas such as energy prices, inflation and government spending priorities. Escalating geopolitical tensions have already contributed to volatility in global markets and could influence the economic picture over the coming months.
For businesses, the key takeaway from the Spring Statement is that there are no immediate changes to the tax landscape, but the wider economic environment remains one to watch closely.
As always, planning ahead and keeping a close eye on developments will be important.
Please contact a Champion advisor on 0161 703 2549 if you have any immediate questions or queries surrounding the Spring Statement.