Spring statement 2026 live: Reeves insists her economic plan is ‘right’ despite growth forecast for 2026 being slashed – UK Times

Political reporter Athena Stavrou writes:

Rachel Reeves has hit out at the Tory record in government as she delivers her spring forecast.

The chancellor said 14 years of Tory government had “squandered Britain’s credibility”, as she insisted her fiscal plan would “rebuild it”.

“I came into politics because I believed in a government that stands up for working people,” she said.

She blamed Liz Truss’ infamous mini budget on hardship “inflicted on working people over 14 years austerity”, adding it had been “cheered on by the leader of the opposition”.

She later added: “The Tories squandered Britain’s credibility. My plan is rebuilding it.”

Political editor David Maddox reports:

The chancellor is carrying on the tactic of taking on Reform UK more than the “failed” Tories in this Spring Statement.

She made a joke about “the member for Clacton” (Nigel Farage) not being in the chamber and dismissed Reform as “a Tory tribute act”.

Looking at the Tory defectors now sitting with Reform UK including its Treasury spokesman Robert Jenrick she had an even harsher put down though.

“If you import failed Tory politicians, you get failed Tory policies too”, she said to cheers from Labour MPs.

Rachel Reeves said she had the “right economic plan” for the UK despite the budget watchdog slashing its forecast for growth this year.

The Office for Budget Responsibility indicated gross domestic product will increase by 1.1% in 2026, down from the 1.4% it forecast in November.

But the watchdog upgraded its forecasts for 2027 and 2028 from 1.5% to 1.6%.

Updating MPs on the forecasts in her spring statement, against the backdrop of the war in the Middle East, Ms Reeves said: “This Government has the right economic plan for our country, a plan that is even more important in a world that in the last few days has become yet more uncertain.”

She added: “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.”

Political writer Athena Stavrou reports:

Rachel Reeves has said the Office for Budget Responsibility’s (OBR) latest economic forecasts have shown the “average growth across the forecast period is largely unchanged”.

The chancellor said the OBR has “adjusted the profile of GDP so that it grows slightly slower in 2026 and faster in 2027 and 2028”.

She added it is predicted to grow by by 1.1 per cent in 2026, 1.6 per cent in 2027 and 2028, and 1.5 per cent in 2029 and 2030.Unemployment is set to peak later this year and then fall in every year of the forecast period, ending the period at 4.1 per cent – lower than it was at the start of the Parliament, MS Reeves also said.

Political reporter Athena Stavrou writes:

Rachel Reeves has warned Reform UK that accepting Tory defectors will leave them with “failed Tory policies too”, as she defended the government’s decision to scrap the two-child benefit cap.

Both the Conservative Party and Reform UK have pledged to reinstate the limit if they were to be elected to government.

“The Tories have said that they would reinstate that destructive policy and now Reform the same exactly the same thing,” Ms Reeves said.

“Two parties united in their intention to plunge nearly half a million children back into quality of a single stroke.”

She added: “If you import failed Tory politicians, you get failed Tory policies too.”

Political editor David Maddox writes:

There are not expected to be any announcements in the Spring Statement today but it is clear that Rachel Reeves wants to use the occasion to validate what she has done and the trajectory of the embattled government led by Keir Starmer.

With the prime minister still facing an uncertain future after the Gorton and denton by-election and with the local and devolved elections looming on 7 May, the case for economic stability and growth is essential for the survival of both Sir Keir and Ms Reeves.

Ms Reeves was heckled by the benches opposite as she boasted of the best economic growth in the G7 and insisting that the economy is on the right course with “the economy growing, inflation falling and living standards growing.”

It certainly appeared to lift the mood of the benches behind her though with labour MPs desperately wanting some good news.

Commenting on the “shameful” two-child benefit cap, Rachel Reeves called it a “destructive policy” which used to send “children to school hungry”.

The chancellor called out Reform and the Tories who backed the two-child policy.

She said they are “two parties united in their attention to plunge nearly half a million children back into poverty in a single stroke”.

Chancellor Rachel Reeves has said she is in “no doubt about Britain’s ability to navigate” challenges, 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.”

Political writer Athena Stavrou reports:

Rachel Reeves has promised to protect Britain’s economy in the midst of uncertainty around the globe.

Speaking to MPs during her spring statement, the chancellor said the government’s economic plan is now “even more important in a world that in the last few days has become even more uncertain”.

She said: “It is incumbent on me and on this government to charter course through that uncertainty, to secure our economy against shock and protect families from the turbulence that we see beyond our borders.”

Political editor David Maddox writes:

Given the current situation with a new war in the Middle East as Iran lashes out at the UK and other allies, Ms Reeves needed to provide some early assurance.

She has also been facing questions being asked about whether the government is actually spending what it promised to spend on defence.

She boasted of the “biggest uplift in defence spending” since the last government.

Ms Reeves also made it clear she is talking to the North Sea energy sector and finance ministers around the world on how to deal with the Iran crisis.

Her words on defence were met with ironic cheers from the opposition benches because there is real doubt whether she will hit the 3 per cent of GDP spending that Keir Starmer has promised.