Last November’s budget was preceded by much speculation, followed by announcements of large tax rises, bringing tax as a share of GDP to an all-time high.<\/p>\n
But Ms Reeves<\/a> and the Treasury have said the spring statement – rebranded from the spring budget – will be low-key and no major announcements will be made. She is not even expected to carry her statement in her famous red box.<\/p>\n Despite it not being a “major” event, the spring statement can influence the government over whether to raise or cut future taxes and spending.<\/p>\n Image: Will the OBR be involved in the spring statement?<\/p>\n Ms Reeves will outline the latest economic forecasts from the Office for Budget Responsibility (OBR) – which will then be published after the chancellor has delivered her speech.<\/p>\n So, despite it being “low-key”, it will still be a critical moment as it will show what effect the last budget and the government’s policies have had.<\/p>\n The OBR produces two forecasts a year, which indicate how the economy is expected to perform and if the government is likely to meet the tax and spending rules it has set.<\/p>\n \n The chancellor’s two fiscal rules:\n <\/p>\n Not to borrow to fund day-to-day public spending by the end of this parliament The OBR was thrown into the spotlight at the last budget when it accidentally leaked its assessment<\/a>, therefore revealing the budget – about 40 minutes before Ms Reeves stood up to deliver her announcement.<\/p>\n This time, following a security review, the Treasury will publish the OBR’s forecast on gov.uk, instead of on the OBR’s own website.<\/p>\n It will be the first time in the OBR’s 16-year history it will not publish a formal assessment of the government’s progress towards meeting its fiscal rules.<\/p>\n However, this will be enough for economists to figure out the size of the chancellor’s headroom, which could have an impact on the economy.<\/p>\n Read more: <\/a> <\/p>\n Share<\/p>\n \n What does falling inflation mean for you?<\/p>\n Will Rachel Reeves raise taxes?<\/p>\n The chancellor has said she will not be making any major announcements, but she could make minor changes to tax policy.<\/p>\n However, this could be politically risky as she could then be accused of deploying stealth taxes.<\/p>\n It would also open her up to attacks from opposition parties – and, as seen before, potentially from her own party.<\/p>\n What is the current state of the UK economy?<\/p>\n Despite inflation falling sharply, the UK economy remains fragile, and inflation (currently at 3%) is still above the Bank of England’s<\/a> target of 2%.<\/p>\n There are also concerns about growth, with the UK’s GDP growing just 0.1% in the last three months of 2025 – but it grew by 1.3% over the whole of 2025.<\/p>\n Unemployment has reached its highest level since 2021, increasing to 5.2% in the three months to December 2025. The unemployment rate among 16 to 24-year-olds across that period was 16.1%, the highest since 2014, according to ONS data.<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/02\/skynews-nusrat-ghani-racel-reeves_7092480.jpg\")
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\n The chancellor delivering the autumn budget last November<\/p>\n
\n To get government debt falling as a share of national income by the end of this parliament<\/p>\n
Record-breaking budget surplus as tax income rises<\/a>
Budget 2025 – the key points at a glance<\/a><\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/02\/skynews-uk-economy-inflation_7168054.jpg\")
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