Spring Forecast Statement

Baroness Gill Excerpts

Tuesday 17th March 2026 Lords Chamber

[Baroness Gill (Lab)]

My Lords, this year’s spring forecast is not just an economic and accounting exercise; it provides clarity, alongside the latest forecasts from the OBR. It is encouraging to see the forecasts of steady growth and falling inflation, resulting in the UK having the fastest growth of any G7 country in Europe. This will give households and businesses greater confidence for the coming years.

However, in a world facing real turbulence and uncertainty, with the wars in Ukraine and the Middle East that have implications for energy prices, inflation and global trade, it is particularly important that this Government are focusing on sustainable growth, meaning that we will be sheltered from the worst of energy shocks. Building on the Government’s successes in entering trade agreements with India and the US and resetting our relationship with the European Union, it shows that by working constructively together with our nearest neighbours and other partners, the UK is in a much better place than many others.

The Chancellor has already outlined in the other place the foundations on which this Government are building a responsible and strong economy, the main components of which are: stability in our public finances, investment in our infrastructure, and emphasis on the growth agenda. These are already reforming Britain’s economy. She has clearly set out plans that support working people and children, encourage investment and keep our public finances sustainable.

The Chancellor’s focus on the digital/AI economy, regional devolution, creating opportunities, and fiscal discipline demonstrates that this Government are determined not only to manage today’s pressures but to build a stronger economy for the future. These measures will be vital in securing growth, particularly in regions and sectors looking to expand and innovate.

It is reassuring to see a clear plan that supports working people, strengthens the public finances and encourages the investment our economy needs to thrive. Yet growth is not driven by domestic policy alone. The UK’s future prosperity is closely linked to a strong and pragmatic economic partnership with our European neighbours. There is enormous potential for deepening trade, attracting investment, and collaboration on cutting-edge innovation, from green energy and low-carbon technologies to digital infrastructure and financial services.

Constructive EU engagement can also help secure supply chains, reduce costs for businesses and open new markets for UK exporters, creating jobs and opportunities across every region in the UK. The biggest prize is with the EU, as the Chancellor stated today in her Mais Lecture. Deepening partnership with the EU is the right thing to do. Britain should align with EU regulatory standards where it is in our national interest: it is a quick win that will reap benefits for businesses and households. Can my noble friend the Minister explain how the improved economic outlook, as highlighted by the OBR, together with the reforms in the finance Bill, will drive investment at home but also allow the UK to fully seize the growth opportunities offered by stronger co-operation with our European partners?

This is the time we must put country before party, militarily and economically. We can have our differences on detail and numbers, but at this time the House needs to come together in the national interest to safeguard our country’s economic future, in the same way as I have heard this House celebrate the contribution of the noble Lord, Lord St John of Bletso. I arrived too late to see the noble Lord’s work in this House: nevertheless, I wish him well in his continuing endeavours in Africa.