The UK Spring Forecast, announced by the government Tuesday, “falls short of what is needed to instil levels of business confidence”, according to a news release from CIMA.
The UK government, in a news release, emphasised decisions by Chancellor of the Exchequer Rachel Reeves at the autumn Budget to ease cost of living, including reducing energy bills by £150 and freezing rail fares, as factors that it expected to lower inflation.
The Office for Budget Responsibility’s March 2026 outlook forecasts that CPI inflation will fall to 2.3% in 2026 and to 2.0% from 2027 onwards and that public sector net borrowing will fall from 4.3% of GDP this year to 1.6% of GDP in 2030-31.
The OBR forecasts were made before the Middle East conflict started, and the OBR has since cautioned that the war could have serious impacts on the UK’s and the global economy.
In a news release, Andrew Harding, FCMA, CGMA, chief executive–Management Accounting at the Association of International Certified Professional Accountants, said: “The Spring Forecast identified there is still a lot of work to be done to drive meaningful growth and address productivity. Whilst it is a positive message to talk about stability, we were hoping to see policy stimulation linked to skills, tax reform, and support for SMEs.”
In advance of the Spring Forecast in a letter to Reeves, CIMA outlined six key policy priorities designed to incentivise employment, investment, and innovation.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.