What is the Spring Statement?
Definition of the Spring Statement
The Spring Statement is an annual statement made by the Chancellor of the Exchequer to the House of Commons. It provides an update on the overall health of the economy, the Office for Budget Responsibility (OBR) forecasts and an update on progress made since the Autumn Budget.
The Spring Statement is one of two major financial statements given in a financial year. The other is the Autumn Budget. The financial year runs from 1st April to 31st March (not to be confused with the tax year which runs from 6th April).
In 2016, Chancellor Philip Hammond announced that instead of a Budget in the Spring and an Autumn Statement, there would instead be a Budget in the Autumn and a Spring Statement. Phillip Hammond delivered the first Spring Statement on 13th March 2018.
What does the Spring Statement include?
The Spring Statement gives an update on the overall health of the economy and progress made since the Autumn Budget. It’s also a chance for the government to invite people and businesses to give views on changes it is considering. In the 2018 Spring Statement for example, the government sought views on the role of cash in the new economy and on reducing single-use plastic waste.