Get ready for a live update on the UK economy, as Chancellor Rachel Reeves takes center stage!
The State of the Nation's Finances: Unveiling the Metrics
In just over an hour, Reeves will provide an insightful overview of the UK's economic health. But what exactly do officials and experts look at to assess this?
Let's break it down:
Gross Domestic Product (GDP): This is the grand total of all economic activities within a country, encompassing businesses, governments, and individuals. A falling GDP indicates a shrinking economy.
Inflation: Simply put, it's the gradual increase in the prices of goods and services over time. The Office for National Statistics (ONS) monitors these price changes to calculate inflation, which has been above the Bank of England's 2% target.
Unemployment Rate: Contrary to popular belief, this metric doesn't just count anyone without a job. To meet the ONS definition, an individual must be without work, available for work, and actively seeking employment.
Now, here's where it gets controversial:
According to the ONS, the UK's unemployment rate rose to its highest in nearly five years at the end of 2025, reaching 5.2% in the three months to December.
Your Finances: Key Numbers to Watch
Kevin Peachey, our Cost of Living Correspondent, highlights the importance of today's data release. In the absence of new policies from the chancellor, these numbers will impact your finances.
Key metrics to watch include inflation, which charts the rising cost of living, and average disposable income, a measure of earnings after tax, indicating households' spending power.
And this is the part most people miss:
The inevitable impact of the US-Israeli war with Iran won't be reflected in today's figures, as they were calculated before the air strikes.
A Budget Health Check: What's on the Chancellor's Plate?
Faisal Islam, our Economics Editor, provides an insightful overview. Against the backdrop of rising energy prices and volatile financial markets, Reeves will deliver her Spring Statement.
Today's announcements will react to the latest official economic health check from the Office for Budget Responsibility (OBR). While markets have calmed, helping lower government borrowing costs, growth and job outlooks are predicted to slow.
The statement will also assess the costs of recent policy changes, such as row backs on farm inheritance tax and business rates for pubs.
And here's a thought-provoking question:
With some in business and politics calling for a multi-pronged strategy for economic growth, why is there no new policy announced today?
Reeves' Message: A Strong and Secure Economy
The chancellor will argue that the government has a robust economic plan for the UK, especially in an increasingly uncertain world. Reeves will highlight the government's efforts to reform the economy and invest in infrastructure, aiming for growth across all parts of Britain, with an active state role.
She emphasizes that "because of the decisions we have already taken, we have a stronger and more secure economy. Inflation and interest rates are falling, and working people are better off in every part of Britain."
The Spring Statement: Why It Matters
This statement outlines the latest economic forecasts from the OBR, providing an indication of the economy's expected performance and the government's likelihood of meeting its tax and spending rules.
The two main rules are not to borrow for day-to-day public spending by the end of this parliament and to reduce government debt as a share of national income.
If the government is at risk of not meeting these rules, it may cut spending or raise taxes.
Today's Forecast: A Snapshot of the UK Economy
Imogen James, our Live Reporter, brings us the latest. Following Reeves' Spring Statement, the OBR will release estimates for growth, inflation, unemployment, government spending, and tax income over the next few years.
However, these forecasts won't account for the potential impact of the recent oil price jump triggered by strikes on Iran.
While not as significant as the Budget, the Spring Statement is still crucial, as it can influence future government decisions on taxes and spending.
Stay tuned for live updates and analysis on Reeves' statement and its potential impact on your finances!
