The Spring Statement on 3 March 2026 was deliberately low-key. The Chancellor focused on updated forecasts from the Office for Budget Responsibility (OBR) and the government’s response, rather than a long list of new measures.
For anyone trying to make sensible decisions around financial planning and long-term wealth, that matters. When the rules stay steady, you have room to take confident action, instead of constantly second-guessing what might change next.
This piece is part of The Financial Journey, where we help clients across Dorset and Hampshire turn big economic moments into clear, practical next steps.
Key Takeaways
- The Spring Statement 2026 brought no major surprises, which can be a positive for long-term financial planning.
- The OBR forecasts slower GDP growth in 2026, easing inflation, and a rising-then-falling path for unemployment.
- Bank Rate is expected to fall to around 3.5% by late 2026, which has implications for mortgages and borrowing.
- The full new State Pension rises to £241.30 per week from April 2026.
- Unused pension funds and death benefits are still on course to be brought into the scope of Inheritance Tax from April 2027.
- Stability creates an opportunity to strengthen your financial plan rather than react to it.
Was anything major announced in the Spring Statement 2026?
No, and that calm matters.
The Spring Statement was framed as an economic update, and industry commentary welcomed the absence of major surprises. The Professional Adviser noted the relief many in the financial planning sector felt at the lack of fresh speculation or unexpected changes.
“Sometimes the most helpful statement is the one that does not introduce fresh uncertainty. When the rules stay steady, people can focus on what matters: solid financial planning, sensible decisions, and long-term confidence.”
~Oscar Hjalmas, CEO, Baggette + Co. Wealth Management
That lack of drama might not grab headlines, but for clients across Poole, Bournemouth, and the wider Dorset area who are managing business decisions, mortgage choices, pensions, and investments at the same time, a quieter statement can be a genuinely useful backdrop.
What did the OBR forecast for growth, inflation, and interest rates?
The central message from the OBR’s Economic and Fiscal Outlook is slower growth in 2026, with inflation easing and a mixed picture on the labour market.
GDP growth
The OBR forecasts GDP growth of 1.1% in 2026, rising to 1.6% in 2027 and 2028, and 1.5% in 2029 and 2030. Growth is slower in the near term, but the direction of travel is steady rather than alarming.
Inflation (CPI)
Inflation is forecast to ease to 2.3% in 2026, reaching the 2% target in late 2026 and remaining there from 2027 onwards. For anyone watching their cost of living or planning retirement income, this gradual easing is a constructive signal.
Unemployment
Unemployment is expected to rise before falling later in the forecast period. The OBR is careful to note that geopolitical risks, including Middle East conflict and energy market pressures, could materially shift the outlook.
Bank Rate and interest rates
The OBR’s forecast uses market expectations that Bank Rate falls from 3.75% to around 3.5% by late 2026, before rising gradually later in the forecast period.
As always, forecasts are not promises. The value of working with an Independent Financial Adviser is not to predict the next move, but to build a plan that stays robust when life does not behave neatly.
What does this mean for mortgages, borrowing, and day-to-day cash flow?
For most people, the practical question is not what the OBR forecast says on paper. It is what it means for the decisions in front of them right now.
If you are remortgaging or refinancing in the next 6 to 18 months, it is worth exploring your options early rather than waiting for rate moves to play out.
If you have variable-rate borrowing, whether personal or as a business owner, it is worth checking how sensitive your budget is to rates staying higher for longer than expected.
And if you are building wealth, a cash buffer can be a calm-making tool rather than dead money when uncertainty is elevated. That is a perspective we often share with clients across Hampshire and Dorset who want their money working sensibly without unnecessary risk.
What is the sensible approach for business owners?
Business owners face a particular version of this challenge. You are often managing cashflow, debt, investment decisions, and personal financial planning at the same time.
Slower growth forecasts and a still-uncertain interest rate path make it worth pressure-testing your budget and business cashflow against a couple of less comfortable scenarios. The goal is fewer surprises, not a perfect prediction.
What does the Spring Statement mean for pensions and long-term saving?
Stability helps confidence, and confidence matters more than people often realise in financial planning.
For most people, pensions are a long-term tool. When the rules feel like they might change every few months, it becomes harder to commit to sensible long-term saving habits. A quieter statement can help people take consistent action, which is often where the real value in financial planning is built.
There were no new pension announcements in the Spring Statement itself. The relief expressed by industry commentators reflects how disruptive repeated pension changes can be for advisers and clients alike.
Should I still review my pension planning?
Yes, but not because of this statement. Good pension planning is an ongoing process rather than a reaction to a single event.
The more pressing prompt is making sure your pension fits within your wider financial plan, including how it connects to your retirement income goals, your tax position, and your estate planning wishes.
Why does Inheritance Tax planning still matter, even with no new announcements?
The Spring Statement did not introduce new Inheritance Tax measures. But that does not mean IHT planning can wait.
HMRC has already confirmed, through published policy, that unused pension funds and death benefits will be brought into scope of Inheritance Tax from 6 April 2027. The OBR discusses this in its March 2026 outlook and notes that behavioural responses are uncertain. That uncertainty is another reason not to leave planning until the last minute.
For clients in the Accumulation or Preparation stages of The Financial Journey, this is an important prompt. It is worth making sure your financial planning connects pensions, beneficiaries, and wider estate wishes into one joined-up picture rather than treating them as separate conversations.
What should I do about pensions and IHT now?
You do not need to act in a rush, but you do need to act ahead of April 2027. That window is now less than 13 months away.
Key areas to review include your pension death benefit nominations, how your pension sits alongside the rest of your estate, and whether any lifetime gifting or trust planning could reduce your IHT exposure. An Independent Financial Adviser in Dorset can help you map this out in a way that is practical and proportionate to your circumstances.
What is happening to the State Pension from April 2026?
The full new State Pension rises by 4.8% from April 2026 to £241.30 per week, which equates to £12,547.60 annually.
This is not a retirement plan by itself, but it is an important input into retirement cash flow modelling. For clients approaching retirement across Poole, Bournemouth, and the wider Dorset area, having an accurate State Pension figure helps keep projections grounded in real numbers rather than rough estimates. If you are unsure of your own State Pension forecast, you can check this through your Government Gateway account at gov.uk.
What should you do now after the Spring Statement?
You do not need to overhaul your financial plan because of one statement. But a quiet moment in the political calendar is often a good prompt to strengthen the basics.
Check your borrowing timeline
Know when any fixed rates end and what your realistic options look like. Do not let a product expiry date force a rushed decision.
Pressure-test your budget and business cash flow
Model one or two less comfortable scenarios so there are fewer surprises later. This is particularly relevant for business owners managing both personal and commercial finances.
Sense-check your long-term plan
Make sure pensions, investments, tax allowances, and protection still align with your life goals. If things have shifted since your last review, now is a good time to address them.
A short conversation with an Independent Financial Adviser can help you identify which of these needs attention and which is already in good shape.
Speak to an Independent Financial Adviser in Dorset About Your Financial Planning
Making confident financial decisions in the months after a Spring Statement can feel harder than it should. The gap between knowing what matters and knowing what to do about it is where many people get stuck.
At Baggette + Co. Wealth Management, we support clients across Dorset and Hampshire with independent financial planning that brings clarity to exactly these moments. As an independent and Chartered firm, we take a whole-of-market view and help you understand how economic changes connect to your pensions, investments, tax planning, and longer-term goals.
Whether you are looking to make sense of this Spring Statement, review your pension and IHT position ahead of April 2027, or simply want a clearer picture of where you stand, the right plan gives you peace of mind. It helps you move forward without relying on assumptions or leaving important decisions until they feel urgent.
If you would like to talk through what this means for your financial plan, speak to Oscar Hjalmas on 01202 676 983 or email [email protected].
Baggette + Co. Wealth Management is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority do not regulate tax planning, cashflow planning and estate planning. The above information is correct to the best of our understanding as at the date of publication. Nothing within this content is intended as, or can be relied upon as, financial advice. Capital is at risk. A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless the plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits. The tax implications of pension withdrawals will be based on your individual circumstances, tax legislation and regulation which are subject to change. You should seek advice to understand your options at retirement. Tax rules may change, and the value of tax reliefs depends on your individual circumstances. Your property could be repossessed if you do not keep up repayments on a mortgage, or any debt secured on it.