Chancellor Rachel Reeves is poised to deliver an update on the health of the British economy on Wednesday.
The spring statement is not a formal budget – as Labour pledged to only deliver one per year – but rather an update on the economy and any progress since her fiscal statement last October.
While it’s not billed as a major economic event, Rachel Reeves has a big gap to plug in the public finances and speculation has grown she may have to break her self-imposed borrowing rules.
Here, Sky News explains everything you need to know.
What is the spring statement?
The spring statement is an annual speech made by the chancellor in the House of Commons, in which they provide MPs with an update on the overall health of the economy and Office for Budget Responsibility (OBR) forecasts.
It is one of two major financial statements in the financial year – which runs from 1 April to 31 March.
The other is the autumn budget, a more substantial financial event in which the chancellor sets out a raft of economic policy for the year ahead.
Typically, the spring statement – which was first delivered by ex-chancellor Phillip Hammond in 2018 – gives an update on the state of the economy, and details any progress that has been made since the autumn budget.
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2:55
Sam Coates previews the chancellor’s announcements
When will Rachel Reeves deliver it?
The OBR, which monitors the government’s spending plans, will publish its forecast on the UK economy on 26 March.
It is required to produce two economic forecasts a year, but the chancellor said she would only give one budget a year to provide stability and certainty on upcoming tax changes.
The OBR will also provide an estimate on the cost of living for British households, and detail whether it believes the Labour government will adhere to its own rules on borrowing and spending.
The chancellor will then present the OBR’s findings to the House of Commons, and make her first spring statement.
This will be responded to by either Conservative leader Kemi Badenoch or shadow chancellor Mel Stride.
Image: Rachel Reeves is looking to plug gaps in the UK’s finances. Pic: PA
Why does it matter?
The UK economy is thought to be underperforming – potentially due to global factors, like Donald Trump’s trade tariffs – and there are rumours that the chancellor could consider breaking her own rules on borrowing in response.
The economy contracted slightly in January, while inflation has climbed to a 10-month high of 3%. Meanwhile, the government has committed to boosting defence spending to 2.5% of GDP by 2027 – an expensive task.
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Ms Reeves’s fiscal rules mean she cannot borrow for day-to-day spending – leaving cuts as one of her only options. Her other “non-negotiable” is to get debt falling as a share of national income by the end of this parliament.
It is expected that welfare cuts will be part of the spring statement package to help the chancellor come within her borrowing limit.
In short, the Treasury believes Ms Reeves must maintain £10bn in headroom after months of economic downturn and geopolitical events since last October’s budget.
It is widely expected the OBR will confirm that this financial buffer has been wiped clean.
Where can I watch the spring statement?
The spring statement will be delivered in the House of Commons on Wednesday 26 March, directly after Prime Minister’s Questions, which is usually finished by around 12.30pm.
You’ll be able to keep up to date on Sky News – and follow live updates in the Politics Hub.
A major incident has been declared in Birmingham over an ongoing bin strike, which has left around 17,000 tonnes of waste on the streets of the city.
Birmingham City Council said the “regrettable” step was taken in response to public health concerns, with picket lines blocking depots and preventing waste vehicles from collecting rubbish.
Members of Unite have been on all-out strike since 11 March in a row over pay, which the union claims will leave some members of staff £8,000 worse off. A series of walkouts have also impacted refuse collections since January.
By declaring a major incident, the council will be able to increase the availability of street cleansing and fly-tip removal with an additional 35 vehicles and crews around the city.
This action will also allow the council to explore what further support is available from neighbouring authorities and the government to assist in the management of the situation.
Council leader John Cotton said it was a “regrettable” step, but the situation was “causing harm and distress” to local people.
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Birmingham suffers bin crisis
“I respect the right to strike and protest, however actions on the picket line must be lawful and sadly the behaviour of some now means we are seeing a significant impact on residents and the city’s environment,” he said.
Jim McMahon, the minister for local government, said the all-out strike by Unite members is causing “misery and disruption” to residents, as well as posing a “public health risk to the city’s most vulnerable and deprived”.
He said the government “stands ready” to respond to any request for extra resources, but insisted that any deal to end the bin strike must “maintain value for money”.
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‘They can’t hold the city to ransom’
Mr McMahon told the Commons: “This is causing a public health risk to the city’s most vulnerable and deprived residents. As a result, I am aware that Birmingham has today declared a major incident to give them the mechanisms to better manage the impact on local residents.
“I support that decision, and I will back local leaders.”
The minister added that the government will “not hesitate to give support in any way that Birmingham leaders need”.
He said: “If local leaders on the ground in Birmingham feel that tackling these issues goes beyond the resources available to them and they request national support, then of course we stand ready to respond to any such request.”
Members of the Unite union met with Birmingham City Council last Thursday, but talks have so far failed.
Unite says the dispute will not end unless the “hugely damaging” cuts to bin collectors’ wages are reversed.
But Birmingham City Council says the aim of the restructuring is to create a “modern, sustainable and consistently reliable waste collection service”.
An “extensive search” is under way to find an 11-year-old girl after she fell into the River Thames in east London.
The Metropolitan Police said it was called at around 1.15pm on Monday to reports the girl had entered the river near Barge House Causeway, near London City Airport.
All emergency services are forming a “large-scale response” to the incident.
The girl’s next of kin have been made aware and are being supported by officers.
The London Ambulance Service was also called at a similar time, after receiving a report of a person in the water at Lowestoft Mews, which is close to the airport.
“We sent resources to the scene, including an ambulance crew, an advanced paramedic, an incident response officer and members of our hazardous area response team,” a spokesperson said.
“Our crews assisted our emergency services partners at the scene but were later stood down.”
London Fire Brigade Deputy Assistant Commissioner Joseph Kenny added that “firefighters responded to reports of a person in the River Thames near Lowestoft Mews, Newham”.
He said crews from East Ham, Barking, Ilford and Bexley fire stations were sent to the scene alongside other emergency services.
“The brigade also deployed its drone team and fire boat as part of its response, with crews carrying out a systematic search of the area,” he added.
“The brigade was first called about the incident at 1.23pm. Search operations for firefighters were concluded at 3.49pm when responsibility for the incident was left with the police.”
This breaking news story is being updated and more details will be published shortly.
Controversial sentencing guidelines that were due to come into force on Tuesday have been delayed after a political backlash.
The Sentencing Council, the independent body that sets out sentencing guidance to courts in England and Wales, was due to bring in new rules around how judges should determine punishment for people from ethnic minority backgrounds.
The new guidance states that a pre-sentence report – the results of which are taken into account when considering a criminal’s sentence – will “usually be necessary” before handing out punishment for someone from an ethnic, cultural or faith minority, alongside other groups such as young adults aged 18 to 25, women and pregnant women.
Shabana Mahmood, the justice secretary, had said the proposed guidance was “unacceptable” and amounted to “differential treatment before the law” as she urged the council to reverse it.
When the Sentencing Council initially refused her request, Ms Mahmood threatened to legislate to overturn the guidance if necessary.
She confirmed this evening that she would introduce legislation on Tuesday to block these guidelines coming into effect.
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Robert Jenrick has hit out at what he says is
The Sentencing Council has now delayed the “in force date of the guideline pending such legislation taking effect”.
It said in a statement that the council “remains of the view that its guideline, imposition of community and custodial sentences, as drafted is necessary and appropriate”.
However, in a meeting between the chairman Lord Justice Davis and Ms Mahmood on Monday, the minister “indicated her intention to introduce legislation imminently that would have the effect of rendering the section on ‘cohorts’ in the guideline unlawful”.
The council said it is unable to introduce a guideline when there is a draft bill due for introduction that would make it unlawful.
Ms Mahmood said: “This differential treatment is unacceptable – equality before the law is the backbone of public confidence in our justice system. I will change the law to ensure fairness for all in our courts.”
The Sentencing Council also attracted criticism from shadow justice secretary Robert Jenrick, who said its updated guidance was an example of “two-tier justice” that would lead to “blatant bias” against Christians and straight white men.
He also argued that it would make “a custodial sentence less likely for those from an ethnic minority, cultural minority, and/or faith minority community” – something the council denied.
The council previously rejected calls from the government to abandon the guidelines, which ask judges to consider offenders’ racial, cultural and religious background when deciding a sentence.
Lord Davis denied that pre-sentence reports reduced the prospect of a jail sentence.
However, he said the council would provide “some clarification of the language” to avoid confusion.