Allegra Stratton: Trumping the UK Spring Fiscal Statement
The Houses of Parliament, the day before the Spring Statement. It was a pretty clear picture, until events in the Middle East.
Photographer: Jason Alden/BloombergWhat was supposed to be a reassuringly boring spring statement from the chancellor tomorrow now has a very dramatic backdrop. Donald Trump has turned on Keir Starmer today for initially refusing to allow the US to use Diego Garcia for operations in Iran, saying he is “very disappointed in Keir.” Then today Qatar shut its LNG export terminal after it was targeted in a drone attack, sending European gas prices surging more than 50%. With political and fiscal impacts, events are trying to trump the spring statement.
After the circuses of previous fiscal statements, the chancellor shrewdly wanted a straightforward day at the dispatch box with no surprises. Indeed, if anything, there would be good news for her to reveal tomorrow — as our reporters detail today, she has had a £22 billion boost with tax receipts higher thanks to boosted VAT and higher wage growth (plus fiscal drag bringing more people into higher rates). According to Bloomberg’s Tom Rees, the revenue raisers combined with lower debt-interest spending are helping drive the improvement in the public finances.