Politics · 3 March 2026
Iran war overshadows Spring Statement as OBR warns of 'very significant' economic hit
Photo by Markus Spiske on Unsplash
Chancellor Rachel Reeves delivered her Spring Statement on 3 March 2026 as the Iran conflict cast a long shadow over Britain's finances. The Office for Budget Responsibility downgraded UK growth to 1.1% for 2026, down from 1.4% forecast in November, and raised its unemployment peak forecast to 5.3% this year. The OBR warned that the Middle East conflict, which escalated as it was finalising the document, could have very significant impacts on the global and UK economies. Brent crude surged 7% to $83.20 a barrel on the day of Reeves's speech.
Reported by ITV News / GOV.UK · How we write briefs