Reeves says her plan is working as growth forecast cut for this year

Chancellor Rachel Reeves has said her economic plan is working in an "uncertain" world, although the growth estimate for the UK has been lowered for this year.

The government's official forecaster, the Office for Budget Responsibility (OBR), cut its expected growth rate for 2026 to 1.1% from the 1.4% expansion it predicted just three months ago in the Autumn Budget.

Reeves announced the figures in her Spring Statement, adding the OBR now expected the rate of inflation to be lower this year than previously thought.

The forecasts were made before the conflict in the Middle East broke out, and the OBR said such an outbreak could have "very significant impacts on the global and UK economies".

Reeves insisted the government had "the right economic plan" for the country, adding it was the government's duty to "secure our economy against shocks and protect families from the turbulence that we see beyond our borders".