LIVE: British finance minister makes budget update speech

Borrowing trajectory shows significant decline

Public sector net borrowing is forecast to fall from 4.3% of GDP this year to 1.8% by 2029-30, with the UK set to borrow less than the G7 average this year.

Increased fiscal headroom provides stability

Headroom against fiscal stability rules increased to £23.6 billion by 2029-30, with investment rule headroom at £27.1 billion, supporting continued public service investment.

Debt interest costs falling sharply

Government expects to spend nearly £4 billion less on debt interest next year than previously forecast, with potential for £15 billion annual savings if yields return to G7 averages.

GDP growth maintains positive trajectory

OBR forecasts GDP growth of 1.1% in 2026, rising to 1.6% in 2027-28, with GDP per capita growing 5.6% over the parliament compared to a fall in the previous parliament.

Real wages outpacing previous decade

Real wages rose more in the first 18 months of this government than in the first 10 years of the previous Conservative administration, with households forecast to be £1,000 better off annually by the next election.

Mortgage savings from monetary policy

Six interest rate cuts since the general election will save households over £1,300 annually on typical new fixed-rate mortgages.

Major child poverty reduction planned

Scrapping the two-child benefit limit is projected to achieve the largest reduction in child poverty since records began, alongside 30 hours free childcare for working families and free primary school breakfast clubs.

Largest defense spending increase since Cold War

Commitments include £650 million for Typhoon fighter jet upgrades, a new Royal Navy frigate launch, and a £1 billion helicopter deal with Leonardo.

Economic response to Middle East tensions

Chancellor confirmed regular contact with the Bank of England governor and international counterparts amid unfolding conflict in Iran and the Middle East, with upcoming meetings with North Sea industry leaders.

Youth employment intervention

An £820 million youth guarantee program aims to reverse the 113,000 increase in young people not in education, employment or training under the previous government.

Regional investment unlocking

Reform of Treasury spending rules (Green Book) aims to unlock investment across urban, rural, and coastal communities to spread economic opportunity beyond London and the South East.

Upcoming trade and technology agenda

Chancellor announced a forthcoming Mais Lecture outlining plans to deepen EU trading relationships, harness AI innovation, and finalize trade deals with India and the US.