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Martin Ford 03 March 2026

Spring Statement: OBR paints gloomy picture of council finances

Spring Statement: OBR paints gloomy picture of council finances image
Chancellor Rachel Reeves emphasised the need for ‘stability’ in her Commons speech © UK Parliament.

The Office for Budget Responsibility (OBR) has painted a gloomy picture for the future of local government finances.

Its economic outlook, published today as part of the Spring Statement, forecasted net current spending by local government would decline in the coming years due to ‘financial pressures in the sector' restricting borrowing and use of reserves.

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