Rachel Reeves will insist she has “the right economic plan for our country” and that “working people are better off” thanks to Labour when she delivers her spring forecast to the Commons today.
Addressing MPs, the chancellor will set out the need to ensure “stability in public finances”, as the world becomes “yet more uncertain”, with the situation in the Middle East set to have a huge impact on the global economy.
But her appearance at the despatch box is expected to be a relatively low-key affair, lasting just 20 minutes.
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It follows her autumn budget last year being preceded with lots of speculation about what would be announced.
The government has pledged to restrict itself to one “fiscal event” a year when it sets out policies – and ministers have said this lunchtime’s speech will contain no new tax and spend announcements.
Instead, she will be giving a response to the latest forecasting by the Office for Budget Responsibility (OBR).
What is the chancellor expected to say?
Ms Reeves will tell MPs of her commitment to “stability in the public finances, investment in infrastructure and reform to our economy”.
The statement comes just weeks after the Bank of England downgraded its growth rating for the UK economy.
At the start of February, the Bank’s gross domestic product (GDP) forecasts for 2026 were downgraded from 1.2% to 0.9%, and from 1.6% to 1.5% for 2027.
But the chancellor will point to falling inflation and interest rate cuts, arguing they are down to Labour.
She will tell MPs: “Because of the decisions we have already taken, we have a stronger and more secure economy, inflation and interest rates falling, and in every part of Britain working people are better off.”
Opposition parties want more from her in the Commons today, though.
The Liberal Democrats have called on Ms Reeves to use the address to announce she is scrapping a planned hike in fuel duty later in the year.
The party’s Treasury spokesperson, Daisy Cooper, said she should also prioritise a “better trade and defence deal with the EU” at a “critical time for our national and economic security”.
“Trump’s illegal actions in Iran will be felt in people’s pockets here with the cost of fuel and food set to rise,” she said.
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Tory shadow chancellor Sir Mel Stride also hit out at the chancellor on Sunday, writing on social media: “We’re getting poorer. Unemployment is at pandemic levels and rising. We have the highest borrowing costs in the G7.
“Britain deserves honesty – and a plan to fix our economy. But if the briefings are to be believed, Reeves will come to parliament on Tuesday and take no action whatsoever.”
