Reaction to Spring Statement from Phoebus Software

03 March 2026

Richard Pike, Sales and Marketing Director at Phoebus Software:

“The Chancellor said this would be a low-key announcement, but the conflict in the Middle East cast a shadow over her Spring Statement today. The OBR’s economic outlook predicts a loosening labour market and falling energy and food prices will contribute to inflation reaching its 2 per cent target in late 2026. However, it’s difficult to see how inflation won’t be affected by the uncertainty caused by the current military conflict. We’re seeing mortgage rates already starting to tick up as the market prices in a potential base rate hold by the Bank of England later this month.

“The OBR also predicts net additions to the UK housing stock will fall to a low of 220,000 in 2026-27, way below volumes in the early 2020s, as recent subdued housing starts to feed through. It also predicts housebuilding will reach 1.3 million by 2030, below the Government’s stated ambition to build 1.5 million homes. Rachel Reeves needs to consider reforms to incentivise housebuilders and create impetus in the building sector if she’s going to hit her target.”