Chancellor commissions OBR forecast ahead of spring statement

The Chancellor has asked the Office for Budget Responsibility (OBR) to produce a new economic forecast, paving the way for a fiscal statement at the end of March.

In a written statement to Parliament, Rachel Reeves said she had asked the OBR to prepare an economic and fiscal forecast that will be published on March 26.

Stability

She added: “I intend to respond to the March forecast with a parliamentary statement.

“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.”

The Chancellor’s March statement is unlikely to be a full budget, coming barely five months after the first one, but could be a “spring statement” either setting out minor changes or providing further details on spending plans.

Requirement

The OBR is required by law to produce two forecasts each financial year, a requirement which the March forecast will fulfil.

The Government is also due to produce its multi-year spending review in 2025, although the exact date of publication remains uncertain.

But Ms Reeves has said the spending review will require Government departments to find efficiency savings amounting to 5% of spending, with the Treasury acknowledging this will mean “difficult” decisions.