Spring Statement 2026: Comments from Browne Jacobson lawyers

03 March 2026

Chancellor Rachel Reeves has delivered an update on the UK’s economic health in her Spring Statement.

Speaking in Parliament today (3 March), she presented updated economic forecasts from the Office for Budget Responsibility (OBR), with no new tax or spending measures announced.

The OBR downgraded its growth forecast for 2026 to 1.1% (from the 1.4% projected at the Autumn Budget) and revised unemployment upwards to a peak of 5.3%, though it forecast that inflation would return to the 2% target by late 2026 and that the Chancellor's fiscal headroom had marginally improved to £23.6bn.

Reeves also said she will soon set out three key objectives for the government, including strengthening global relationships, breaking down trade barriers and harnessing the power of AI.

Browne Jacobson’s lawyers have provided some reaction to the Spring Statement.

Stability will breed business confidence

Richard Cox, Head of Corporate at Browne Jacobson, said: "The Spring Statement is mostly about keeping things steady, rather than announcing big new changes.

"For businesses that have had to deal with lots of tax and spending changes in recent years, that steadiness is itself a message worth paying attention to. Stability does not mean the government lacks ambition — it means the government believes you need a solid, predictable foundation before anything else can work properly.

"Businesses are more likely to invest and grow when they trust that the rules are not going to keep changing. That trust has to be built up over time, by the government doing what it says it will do, consistently."

Regulatory agility in life sciences must complement international trade commitments

Phil Pugh, Partner in the corporate team at UK and Ireland law firm Browne Jacobson specialising in life sciences, said: "Set against a backdrop of considerable global uncertainty, it is right that the Chancellor used the Spring Statement to reiterate the government’s focus on building economic resilience through stronger international partnerships with the EU and other key partners.

“However, international trade commitments alone will not deliver the government's ambitions without a regulatory framework that is fit for purpose. For sectors such as health and life sciences, closer international alignment must be matched by greater regulatory agility.

“The MHRA's ongoing consultation on the indefinite recognition of CE-marked medical devices is a step in the right direction, and we would like to see this complemented by streamlined approval pathways for low-risk MedTech and digital health innovations. Open markets and agile regulation must go hand in hand.”

PPPs may be required to renew hospitals, schools and transport

Craig Elder, Partner specialising in public procurement at UK and Ireland law firm Browne Jacobson, said: “As part of its overall growth strategy, the government may require a bolder and more ambitious infrastructure policy – potentially backed by private finance from government.

“To date, the applications in which public-private partnerships (PPPs) may be used – community healthcare and local decarbonisation – remain relatively narrow. It will be interesting to see whether this remains the case.

“Our ageing roads, railways, hospitals, schools are prisons are in clear need of renewal. A tight public purse means private sector investors and skillsets are an option that could be harnessed if we can learn from the lessons of PFI and develop improved models.

“Creating a long-term pipeline of new social infrastructure developments would also ramp up ailing construction activity and boost a stagnant economy.”