The Chancellor repeatedly referred to “a changing world” in her speech, citing the war in Ukraine as a driving factor (though avoiding comment on President Trump’s tariff-heavy policy).
Due to economic uncertainty, the Labour Party’s priority will be on stability, national investment and defence spending.
Despite this, Reeves announced that the OBR has upgraded its GDP growth forecasts for each year from 2026 to 2029, with the economy now expected to be larger by the end of the forecast period than previously predicted in the Autumn Budget.
The specific figures she outlined include GDP growth of:
- 1.9 per cent in 2026
- 1.8 per cent in 2027
- 1.7 per cent in 2028
- 1.8 per cent in 2029
The hope for many businesses upon hearing this news must be that of optimism.
Economic development could support stronger investment, hiring and growth before the end of the decade.
Therefore, regardless of Reeves’ consistent referrals to economic uncertainty, GDP is expected to outperform previous Budget predictions – a positive takeaway for all.