On Tuesday Chancellor Rachel Reeves will deliver her spring statement to parliament, where she'll update MPs on the economy.

In the 131-page Economic and fiscal outlook March 2026, published alongside the non-statement, figures show how stark the tax take is in Britain. The tax-to-GDP ratio is forecast to increase to a post-war high of 38 per cent of GDP in 2030-31.

The Spring Statement is not a big event like the Budget - but it can influence future tax and spending decisions

Economists don't expect any major policy announcements as the government prioritizes its "Autumn Budget" as the main fiscal event of the year.

Rachel Reeves vows to stay the course and stick to our plan, “a plan that is more necessary than ever before in a world of uncertainty.”

Swaps traders have cut bets on the chance of a quarter-point cut by the BoE’s Monetary Policy Committee this month to about 30 per cent, from 90 per cent on Friday. The market is now only fully pricing one quarter point by the end of the year.

The conflict in Iran cast a shadow over the Chancellor's speech, which forecast falling inflation and better economic growth

Rachel Reeves will announce the government’s 2026 Spring Statement today, with Labour needing to restore confidence in the British economy. While the chancellor has not been drawn on what could be in speech, it is thought that no major announcements will be made.

Average disposable income - which measures the amount of money people have left to spend after they have paid tax – will give us an indication of households' spending power in the coming years. In short, it suggests how much better our living standards are going to get, stripping out the impact of rising prices.