Chancellor Rachel Reeves commissions OBR forecast ahead of spring statement

The Chancellor has called on the Office for Budget Responsibility (OBR) to draft a new economic forecast, which could signal a fiscal update at the end of March.

In a written statement to Parliament, Rachel Reeves announced her request to the OBR for an economic and fiscal forecast set to be released on March 26. She stated: "I intend to respond to the March forecast with a parliamentary statement."

Ms Reeves emphasised her commitment to holding one major fiscal event annually, saying, "This is in line with my commitment to deliver one major fiscal event a year, to give families and businesses the stability and certainty they need and, in turn, to support the Government’s growth mission."

While the Chancellor's March announcement is not expected to be a comprehensive budget, given that it follows just five months after the previous one, it may take the form of a "spring statement" that outlines minor adjustments or elaborates on spending plans. The OBR is legally mandated to produce two forecasts each financial year, and the upcoming March forecast will meet this obligation.

The Government is slated to present its multi-year spending review in 2025, though the exact date is yet to be confirmed. However, Ms Reeves has indicated that the spending review will compel Government departments to identify efficiency savings of 5% in their budgets, a move the Treasury admits will lead to "difficult" decisions.