How the Spring Statement could affect your money
Among the data and projections are key figures that shine a light on prospects for your finances.
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Three Spring Statement forecasts that could affect your money 7 minutes ago Share Save Kevin Peachey Cost of living correspondent Share Save New numbers forecasting the state of the UK economy have been published alongside the chancellor's Spring Statement - shedding some light on prospects for you and your money. Here are three figures from the government's official forecaster which could affect your finances. 1. Inflation UK inflation - which charts the rising cost of living - is forecast to be at or around the target level of 2% over the next five years, according to the Office for Budget Responsibility . This is a far cry from the peak in October 2022 when prices were rising at a rate of 11.1% a year. In January this year, the rate was still well above the target at 3%. As a result, the Bank of England could well have been expected to lower interest rates . That would lower the cost of borrowing on mortgages and other personal loans, but also reduce the interest paid on savings. However, the impact on the price of, say, petrol owing to the US-Israeli war with Iran is not reflected in these forecasts. The numbers were crunched before the air strikes and escalation of the conflict. Given the events in the Middle East in recent days, the trajectory of interest rates becomes more uncertain. It could even result in fewer interest rate cuts than previously expected, or even the chance of rate rises. Spring Statement: Follow live Key points at a glance 2. Spending power Average disposable income - which measures the amount of money people have left to spend after they have paid tax – will give us an indication of households' spending power in the coming years. In short, it suggests how much better our living standards are going to get, stripping out the impact of rising prices. Real household disposable income is expected to grow between 0.6% and 0.9% each year between 2026 and 2030. This is relatively slow compared with recent decades. The government's policy on tax t...
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