LONDON, March 3 (Reuters) - British finance minister Rachel Reeves said fresh forecasts showed inflation and borrowing would be lower than previously thought by Britain's fiscal watchdog, as she set out a budget update.
Delivering the speech against the backdrop of turmoil in the Middle East and markets on the slide, here are some of the main quotes from her speech to parliament:
ON GLOBAL UNCERTAINTY:
"This government has the right economic plan for our country, a plan that is even more important in a world that in the last few days has become yet more uncertain.
"It is incumbent on me and on this government to chart a course through that uncertainty to secure our economy against shocks and protect families from the turbulence that we see beyond our borders."
"The plan that I have been driving forward since the election is the right one: Stability in our public finances, investment in our infrastructure and reform to Britain's economy."
"Stability is the single most important precondition for economic growth."
ON FUTURE GROWTH:
"The OBR has adjusted the profile of GDP so that it grows slightly slower in 2026, and faster in 2027 and 2028.
"GDP is forecast to grow by 1.1% in 2026, 1.6% in both 2027 and 2028, and 1.5% in both 2029 and 2030. And GDP per capita is set to grow more than was expected in the Autumn, with growth of 5.6% over the Parliament."
"In today's forecasts, unemployment is set to peak later this year and then fall in every year of the forecast period ending the Parliament at 4.1% - lower than it was at the start."
ON BORROWING AND INFLATION:
"In their forecasts today, the OBR show that we are set to reduce borrowing by nearly 18 billion pounds compared to the Autumn... The forecast today shows that Public Sector Net Borrowing is set to fall from 4.3% this year, to 3.6% next year, then 2.9%, 2.5%, and 1.8% in 2029-30.
"And even after funding other measures announced since the Budget ... headroom against the stability rule in 2029-30 has increased from 21.7 billion pounds to 23.6 billion pounds, with headroom against the investment rule also higher at 27.1 billion pounds, and debt is set to be lower in every year of the forecast compared to the Autumn."
"The OBR expects inflation to come down even faster than it forecast in the Autumn.
Reporting by Kate Holton, David Milliken and James Davey
Source: Reuters