In this week’s Enews, there is news on the Chancellor’s announcements at the Spring Forecast.

• Chancellor says plan is right despite uncertain backdrop to Spring Forecast Statement
• UK lenders step up with £11 billion push to back British businesses

Chancellor Rachel Reeves insisted she has the ‘right economic plan’ for the UK in her Spring Forecast Statement announcement.

Ms Reeves acknowledged the economic uncertainty caused by war in the Middle East and pledged to chart a course through the turbulence.

The Chancellor’s speech focused on economic growth, the cost of living and public borrowing.

The Office for Budget Responsibility (OBR) cut its growth forecast for this year to 1.1% from 1.4%. However, it said the economy will grow faster in 2027 and 2028.

The OBR’s forecast shows GDP per person is now set to grow more than was expected in the Autumn Budget, with growth of 5.6% over the course of this Parliament.

In addition, Ms Reeves said she was cutting the cost of living, including reducing people’s energy bills by £150 and freezing rail fares.

The OBR’s forecast shows inflation, borrowing and debt interest are falling, whilst investment is rising.

The Chancellor also said she has cut public borrowing, which the OBR said is down by nearly £18 billion compared to the autumn, with borrowing this year set to be the lowest in six years and falling below the G7 average.

The Chancellor concluded:

‘My plan is the right one. I am in no doubt about how great the rewards can be if we stay the course. The forecasts today confirm that the choices this government has made are the right ones.

‘Stability in our public finances, interest rates and inflation falling, living standards rising, more children lifted out of poverty, more appointments in our NHS, more investment in our infrastructure, a growing economy and more money in the pockets of working people.’

Internet link: GOV.UK

Five major UK banks have agreed a £11 billion lending package aimed at SMEs to support small business growth, the government has announced.

The lending commitment is one of the largest collective moves by the banking sector in over a decade. The government says this represents an ‘historic show of confidence in the UK economy’.

Senior executives from NatWest, HSBC UK, Barclays, Lloyds and Santander finalised an agreement with the government on 26 January at a roundtable in Westminster convened by the Business Secretary and the CEO of UK Export Finance Tim Reid.

Combined, the banks serve half of all British businesses across all corners of the country.

Peter Kyle, the UK’s Business Secretary, said:

‘Strengthening Britain’s export potential relies on British businesses having the means, motive, and opportunity to succeed in new overseas markets.

‘The £11 billion these banks are making available will help meet the ambitions of smaller British businesses to fully export, expand and exploit these international market opportunities. It is positive proof of UK lenders’ confidence in the growth prospects of British enterprise.’

Internet link: GOV.UK