{"id":6296,"date":"2025-05-20T11:44:08","date_gmt":"2025-05-20T10:44:08","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/quilter\/?p=6296"},"modified":"2025-05-20T11:44:48","modified_gmt":"2025-05-20T10:44:48","slug":"uk-growth-outlook-dominates-spring-statement-2","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/quilter\/2025\/05\/20\/uk-growth-outlook-dominates-spring-statement-2\/","title":{"rendered":"UK growth outlook dominates Spring Statement"},"content":{"rendered":"<div class=\"hd-block hd-block-table\">\n<figure class=\"wp-block-table\"><table><tbody><tr><td>UK\u2019s 2025 growth forecast cut from 2% to 1% due to global uncertainty.\u00a0<\/td><td>Inflation expected to rise to 3.2% in 2024, then reach the target in 2027.\u00a0<\/td><td>Government policy changes projected to save \u00a34.8bn, restoring planned fiscal headroom by 2029\/30.\u00a0<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p><strong>Chancellor Rachel Reeves\u2019 Spring Statement on 26 March was overshadowed by a disappointing growth forecast from the Office of Budget Responsibility (OBR), and concerns over ongoing pressures on the UK economy.&nbsp;&nbsp;<\/strong>&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>The Spring Statement is not a \u2018Budget,\u2019 but is an opportunity for the OBR, a public body funded by the Treasury, to deliver its independent forecasts for UK economic growth. Back in October 2024, the OBR had expected UK gross domestic product (GDP) to grow by 2% in 2025. However, Rachel Reeves announced in her Statement that the OBR\u2019s forecast had been halved to 1%.&nbsp; While noting she was \u201c<em>not satisfied<\/em>\u201d with the numbers, Rachel Reeves confirmed the downgrade was due to \u201c<em>increased global uncertainty<\/em>.\u201d&nbsp;&nbsp;&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Meanwhile, UK inflation, which dropped to 2.8% in February, is expected to edge up to 3.2% this&nbsp; year, according to the OBR, before declining to 2.1% in 2026 and reaching the Bank of England\u2019s target of 2%&nbsp; from 2027 onwards.&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>The OBR estimates that recently announced policy changes, including welfare reforms and day-to-day departmental spending cuts, will save \u00a34.8bn from the public purse, and will restore in full the government\u2019s planned headroom, with a \u00a39.9bn surplus expected in 2029\/30.&nbsp;&nbsp;&nbsp;<\/p>\n<\/div>\n\n<div class=\"hd-block hd-block-paragraph\">\n<p>Quilter\u2019s Investment Strategist Lindsay James commented, \u201c<em>Ultimately, this was a Spring Statement that could have been a lot worse for the UK economy. Labour has perhaps learned its lesson that the economy requires a more positive tone from government, and that the burden&nbsp; placed upon businesses at the Budget was enough for now.\u201d<\/em>&nbsp;<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>UK\u2019s 2025 growth forecast cut from 2% to 1% due to global uncertainty.\u00a0 Inflation expected to rise to 3.2% in 2024, then reach the target in 2027.\u00a0 Government policy changes projected to save \u00a34.8bn, restoring planned fiscal headroom by 2029\/30.\u00a0 Chancellor Rachel Reeves\u2019 Spring Statement on 26 March was overshadowed by a disappointing growth forecast [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":6298,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,77],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/6296"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/comments?post=6296"}],"version-history":[{"count":1,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/6296\/revisions"}],"predecessor-version":[{"id":6297,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/posts\/6296\/revisions\/6297"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media\/6298"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/media?parent=6296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/categories?post=6296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/tags?post=6296"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/quilter\/wp-json\/wp\/v2\/hd_content_source?post=6296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}