UK's Reeves: Real disposable income to grow this year at nearly twice the rate forecast in October

While delivering the Spring Budget, UK Chancellor of the Exchequer Rachel Reeves noted that they will bring forward 3.25 billion Sterling of investment to reform public services, per Reuters.

Key takeaways

"Day-to-day public spending will rise by 1.2% a year in real terms, vs 1.3% in October."

"Day-to-day spending in 2029-30 will be 6.1 billion Sterling lower than planned in October."

"Will increase capital spending by an average of 2 billion Sterling a year."

"Planning reforms will permanently boost GDP by 0.2% in 2029/30."

"Planning reforms will add 0.4% to GDP in 10 years."

"Overall measures will boost UK GDP by 0.6% in 10 years."

"Growth reforms will deliver an extra 3.4 billion Sterling to support public services by 2029/30."

"Our economy is forecast to be larger at the end of forecast period than forecast in October."

"Real household disposable income will grow this year at nearly twice the rate forecast in October."

Market reaction

GBP/USD stays in the lower half of its daily range as markets assess the details of the Spring Budget. At the time of press, the pair was down 0.3% on the day at 1.2905.