Live: Chancellor Rachel Reeves delivers spring statement

Rachel Reeves is addressing MPs about the state of the UK economy as she delivers her spring statement.

Her speech comes just weeks after the Bank of England downgraded its growth rating for the UK economy, and as financial markets have been rattled by war in the Middle East.

At the start of February, the Bank’s gross domestic product (GDP) forecasts for 2026 were downgraded to 0.9% from 1.2%.

12.50pm

The Chancellor told MPs the Government has “restored economic stability” as she pledged to leave families “better off”.

In her spring forecast statement, she said: “Stability is the single most important precondition for economic growth, that is why we have committed to a single major fiscal event each year, limiting major policy changes to the budget and giving businesses and households the certainty they need.

“Today, the new forecasts from the Office for Budget Responsibility confirm that our plan is the right one: inflation is down, borrowing is down, living standards are up, and the economy is growing.”

12.45pm

Rachel Reeves has said she is in “no doubt about Britain’s ability to navigate” challenges ahead, as she defended Labour’s performance since the 2024 election.

She told the Commons: “I want to reassure this House that I am in regular contact with the governor of the Bank of England (Andrew Bailey), with my international counterparts and with key affected industries, including our maritime sector, and tomorrow, I will meet with our North Sea industry leaders to discuss the implications that they face and work with them to manage this uncertain period.

“In an increasingly dangerous world, I am proud to be the Chancellor that is delivering the biggest uplift in defence spending since the Cold War, with £650 million committed in January to upgrade our typhoon fighter jets, a new Royal Navy frigate launched from Rosyth last week, and just yesterday, our £1 billion helicopter deal with Leonardo.

“I am in no doubt about Britain’s ability to navigate the challenges we face. The plan that I have been driving forward since the election is the right one – stability in our public finances, investment in our infrastructure including our Armed Forces, and reform for Britain’s economy.”

12.38pm

The Chancellor said her economic plan “is even more important in a world that in the last few days has become yet more uncertain” and that “it is incumbent on me and on this Government to chart a course through that uncertainty”.

Rachel Reeves began her spring forecast statement by saying: “This Government has the right economic plan for our country.”

She told MPs: “With the unfolding conflict in Iran and the Middle East, it is incumbent on me and on this Government to chart a course through that uncertainty, to secure our economy against shocks and protect families from the turbulence that we see beyond our borders.”

12.04pm

Rachel Reeves posed for pictures outside 11 Downing Street before heading to the Commons.

11.35am

The Chancellor has been seeking to boost economic growth after disappointing figures.

11.15am

Our latest Economic and fiscal outlook (EFO) will be published today. It will set out our latest forecasts for the economy and the public finances.

This EFO will be published on the HM Treasury website once the Chancellor’s statement is complete. Supporting material and detailed…
— Office for Budget Responsibility (@OBR_UK) March 3, 2026