UK Spring Statement: how healthy is the economy?

On the third of March next week on Tuesday, the UK will release their spring statement. This is a regular checkup on the economy!

Rachel Reeves, a British Politician, will give this statement. The point of doing so is to give a view into the performance of the economy and the trajectory of government finances. It is essentially a progress report.

The Office for Budget Responsibility (OBR) will publish additional information such as growth, inflation, borrowing, and tax revenue forecasts. These numbers that will be released are very important because they show if the government is keeping its promise of lowering national debt and to stop borrowing for daily spending.

What we know as of now is that growth has been weak and inflation is at 3%. Unemployment is up to 5.2%. Although these are not extreme warning signs, it indicates the economy is moving very slowly.

In the autumn Budget, which will be declared later, tax and spending decisions will be published and elaborated upon.

Overall, while the Spring Statement will likely not cause too much commotion, it does tell us how much wiggle room the government has.