#1 out of 10
politics1d ago
Why I was surprised by Reeves's keep calm and carry on approach to her forecast
- Reeves largely stuck to a pre-prepared script for her spring forecast amid new Iran-Israel conflict developments.
- The war in Iran could derail Freeman’s forecast, with the OBR warning of a possible significant economic hit.
- Forecasts show 2026 growth downgraded while 2027-2028 are upgraded, reflecting uncertainty from conflict.
- Energy price risks rise as the conflict could push bills higher for households this July.
- Reeves stressed her government’s plan to 'bring stability' even as uncertainty grows.
- Analysts warn that external shocks could erode the gains from lower inflation and headroom.
- OBR cautioned that global and UK economies face significant risk from heightened conflict.
- The forecast update included a downgrade for 2026 but expectations of improvement in later years.
- The chancellor promised to help households with living costs, despite global volatility.
- The analysis notes that sanctions and defense budget decisions could limit room for fiscal relief.
Vote 0








