The Chancellor of the Exchequer, Rishi Sunak, delivered the Spring 2022 Forecast Statement to Parliament on Wednesday 23 March 2022. This announcement follows the unprovoked, premeditated attack Vladimir Putin launched on Ukraine.
Mr Sunak said, ‘The invasion has created significant uncertainty in the global economy, particularly in energy markets. The sanctions and strong response by the UK and its allies are vital in supporting the Ukrainian people. But these decisions will inevitably have an adverse effect on the UK economy and other economies too.’
He continued, ‘The government has taken the responsible decisions needed ahead of the Spring 2022 Forecast Statement to strengthen the public finances. Which has created the space to provide this extra support. The statement confirms that after providing this support the government continues to meet its fiscal rules, with an increased margin of safety.’
Mr Sunak continued, ‘Higher than expected global energy and goods prices have already led to an unavoidable increase in the cost of living in the UK. The repercussions of the invasion of Ukraine will add to these pressures. Increasing inflation further in the coming months, with the long-term consequences not yet being clear. As a result, the uncertainty surrounding the Office for Budget Responsibility’s (OBR) spring economic and fiscal forecast is higher than usual.’
In our comprehensive guide to the Spring 2022 Forecast Statement, we reveal the key announcements and their effect both on individuals and businesses across the UK.
What does the Spring 2022 Forecast Statement mean for you?