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

Political correspondent Athena Stavrou writes:

Rachel Reeves has finished delivering her spring forecast and shadow chancellor Mel Stride is now delivering her response.

The leading Conservative candidate accused the chancellor of addressing the Commons “with nothing to say and no plan”.

“Unless, of course, doing nothing is a cunning plan to avoid future U-turns,” he said.

The spring forecast differed from those presented in previous years in that it did not include any new fiscal policy for the first time.

Instead, Rachel Reeves outlined and responded to the latest economic forecasts from the Office for Budget Responsibility (OBR), which will be published soon.

Political editor David Maddox writes:

In her spring statement, Rachel Reeves returned to that old favorite of this government, mentioning the vague term “working people” at least seven times.

There wasn’t much talk of growth, but there was a lot of talk of “stability”, a word that former Conservative Prime Minister Theresa May also loved.

But in his response we see some solid attacks from shadow Tory Chancellor Mel Stride, starting with claiming “this is not a Spring Statement, it’s a declaration of surrender”.

It’s a familiar and almost weekly tactic for Conservative MPs to carefully repeat “U-turns” with the same word behind them – although, to be fair, the government has provided plenty of ammunition on this issue.

But if it feels like you’ve heard this before, it’s because you have.

Political correspondent Athena Stavrou writes:

Rachel Reeves broke the record for the governing Conservative Party when announcing her spring forecast.

The Chancellor said 14 years of Tory government had “squandered Britain’s credibility” as he insisted his fiscal plan would “rebuild” it.

“I got into politics because I believed in a government that stood up for working people,” he said.

He blamed Liz Truss’s infamous mini-budget for the hardship “14 years of austerity has inflicted on working people”, adding that it was “applauded by the opposition leader”.

He later added: “The Tories have squandered Britain’s credibility. My plan is to rebuild it.”

Political editor David Maddox reports:

The Chancellor is continuing his tactic of taking on the Reform UK rather than the “failed” Conservatives in this Spring Statement.

He made a joke about the “member for Clacton” (Nigel Farage) not being in parliament and dismissed Reform as “an act of extortion by the Tories”.

He was even harsherly criticized when it came to those who had left the Conservative Party, including Robert Jenrick, the Treasury spokesman who now sits on Reform UK.

“If you import failed Conservative politicians, you get failed Conservative policies,” he said, to applause from Labor MPs.

Rachel Reeves says the budget watchdog has the “right economic plan” for Britain despite cutting its growth forecast for this year.

The Office for Budget Responsibility said gross domestic product will rise 1.1% in 2026, down from a 1.4% forecast in November.

However, the watchdog raised its forecasts for 2027 and 2028 from 1.5% to 1.6%.

Updating the forecast to MPs 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 has become even more uncertain in the last few days.”

He added: “New forecasts from the Office for Budget Responsibility confirm that our plan is correct – inflation is falling, borrowing is falling, living standards are rising and the economy is growing.”

Political writer Athena Stavrou reports:

Rachel Reeves said the Office for Budget Responsibility’s (OBR) latest economic forecasts show “average growth remains broadly unchanged over the forecast period”.

The Chancellor said the OBR had “set the GDP profile to grow slightly slower in 2026 and faster in 2027 and 2028”.

He added that it is estimated to grow by 1.1 percent in 2026, 1.6 percent in 2027 and 2028, and 1.5 percent in 2029 and 2030. MS Reeves said unemployment would peak later this year and then fall in each year of the forecast period, ending the period at 4.1 per cent, lower than it was at the start of Parliament.

Political correspondent Athena Stavrou writes:

While defending the government’s decision to scrap the two-child benefit limit, Rachel Reeves warned Reform UK that accepting Tory defectors would “also expose them to failed Tory policies”.

Both the Conservative Party and Reform UK have pledged to reintroduce the limit if elected into government.

“The Conservatives said they would reintroduce this destructive policy and now reform the same thing,” Ms. Reeves said.

“The two parties are united in their intention to return nearly half a million children to a single stroke of quality.”

He added: “If you import failed Tory politicians you also get failed Tory policies.”

Political editor David Maddox writes:

No announcements are expected at the Spring Statement today, but it’s clear that Rachel Reeves wants to use the opportunity to confirm the actions and direction of the embattled government led by Keir Starmer.

With the prime minister still facing an uncertain future after by-elections in Gorton and Denton, and with local and devolved elections looming on May 7, the state of economic stability and growth is vital to the survival of both Sir Keir and Ms Reeves.

Ms Reeves was heckled by those on the opposite bench as she boasted of the best economic growth in the G7 and insisted the economy was on the right track, “with the economy growing, inflation falling and living standards rising”.

This certainly seemed to change the mood in the benches behind him, despite Labor MPs desperately wanting good news.

Commenting on the “shameful” two-child benefit cap, Rachel Reeves described it as a “devastating policy” that “sends children to school hungry”.

The Chancellor appealed to Reformation and Conservatives who support the two-child policy.

He said they were “two parties coming together to push nearly half a million children back into poverty in one fell swoop.”

Chancellor Rachel Reeves said she had “no doubts about Britain’s ability to meet the challenges” as she defended Labour’s performance since the 2024 election.

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

“In an increasingly dangerous world, I am proud to be the Chancellor who has delivered the biggest increase in defense spending since the Cold War, with £650 million earmarked to develop our typhoon fighter jets in January, a new Royal Navy frigate launched from Rosyth last week and the £1 billion helicopter deal with Leonardo just yesterday.

“I have no doubt in Britain’s ability to meet the challenges we face.

“The plan I have put forward since the election is the right plan: stabilization of our public finances, investment in our infrastructure, including our Armed Forces, and reform of the British economy.”