The economic backdrop to Rachel Reeves’s upcoming spring statement appeared to brighten on Friday after a trio of reports painted a better-than-expected picture of the UK economy. “It’s been a hat-trick of good economics news for once for the UK,” said Sandra Horsfield, a senior economist at Investec bank. “The economy started the year looking a lot healthier and will give the chancellor something positive to point to in her fiscal statement on 3 March,” said Paul Dales, chief UK economist at Capital Economics. It adds up to give Reeves more headroom at the spring statement, with government borrowing running about £8bn below the OBR’s full-year forecast and government borrowing costs having fallen since November. “Fundamentally the UK economy remains weak and vulnerable and the high levels of unemployment, particularly amongst the young, hint at a difficult future ahead.”

Source: The Times February 21, 2026 06:54 UTC