Commenting on the Spring Statement, Barret Kupelian, PwC UK Chief Economist, says:
“The Chancellor chose to give businesses and households an economic update rather than announce new flagship policies. That restraint is economically constructive; it reduces policy churn at a time when certainty and confidence matter the most.
“The Office for Budget Responsibility’s (OBR) refreshed outlook expects government borrowing to fall marginally from 2027–28 onwards. That improvement was helped by stronger-than-expected receipts early in the year, partly reflecting firmer equity market conditions. But the medium-term story is largely unchanged; the public finance repair job still relies on tax revenues rising as a share of the economy.
“On balance, that leaves the government’s fiscal headroom broadly intact. Given the current geopolitical backdrop, preserving that buffer is sensible as the outcome and duration of these risks remain uncertain and could change fast.”
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