NatWest’s latest analysis of the UK Spring Statement outlines the Chancellor’s efforts to regain fiscal headroom through targeted welfare reforms, efficiency measures, and selective investment—while highlighting persistent structural and external risks.
Key Insights:
- Growth Outlook: 2025 GDP downgraded to 1%, but medium-term growth upgraded to ~1.8%, driven by housing investment and planning reforms.
- Inflation & Jobs: CPI forecast raised to 3.2% for 2025; unemployment expected to peak at 4.5%.
- Fiscal Strategy: £9.9bn of fiscal headroom restored via £4.8bn in welfare cuts and £6.1bn in operational savings.
For a full breakdown of fiscal moves and macro projections—read the full report.**
To read this article, you need a subscription to Investment Officer. If you don't have a subscription yet, click on 'Subscribe' to see the various subscription options.
