The Spring Statement will be delivered in Parliament on 3 March, giving an update on the state of the UK economy and the Government’s financial outlook.

Unlike the Autumn Budget, the Spring Statement is unlikely to be used for major tax decisions. For businesses, it is a useful event as it may set the tone for the months ahead and could give early indications of future tax and spending pressures.

What the Spring Statement Is

The Spring Statement is built around the latest set of economic forecasts from the Office for Budget Responsibility(OBR). The OBR publishes forecasts twice a year and considers areas such as growth, inflation, unemployment, government spending and tax income.

The OBR is also responsible for checking whether the Government is on track to meet its self-imposed fiscal rules. However, the Spring Statement will not make a formal assessment in this area, as this is now reviewed only once a year, in the autumn.

Even so, the OBR’s figures are still likely to influence decisions the Chancellor will make later in the year.

What Is Happening

The Chancellor’s speech is likely to begin shortly after midday on 3 March. As soon as the speech has concluded, the OBR’s full forecast will be published on the Government website.

This marks a change from previous practice, when the OBR would publish its forecast on its own website. However, following the early accidental release of OBR data at last year’s Autumn Budget, controls are being tightened on how and when the forecast is published.

Will There Be Any Tax or Spending Changes?

This appears to be highly unlikely. The Chancellor has made clear that she intends to announce major policy decisions only once a year, at the Budget in the autumn. The aim is to end the cycle of constant speculation that can affect business planning and household spending.

However, while we are unlikely to see new tax rises or cuts in the Spring Statement, there could be smaller administrative or follow-up measures.

For most businesses, the real interest will lie in the OBR’s figures, particularly inflation, growth and unemployment, as these influence future interest rates and wage pressures, and may indicate the likelihood of tax changes later in the year.

For example, persistent weak growth or rising unemployment may increase pressure to raise taxes or limit spending. Alternatively, if the OBR provides a more optimistic outlook, especially on inflation, it may strengthen the case for interest rate cuts.

In summary, the Chancellor’s speech is not expected to introduce sweeping policy changes, but her comments could provide insight into how the Government expects the economy to develop over the next 12–18 months.