Responding to the Chancellor's Spring Forecast on 3 March 2026, Ben Harrison, Director of the Work Foundation at Lancaster University said:

“Despite the Chancellor seeking to strike a robust tone regarding the impact of the Government’s economic agenda, ultimately the pace of progress remains slow.

“The OBR’s forecasts underline that 2026 is likely to continue to be highly challenging – particularly for workers struggling with the cost of living crisis and for young people struggling to find a secure job.

“The growth forecast for 2026 has been revised down to 1.1%, with the OBR suggesting that unemployment has yet to peak and inflation will only return to target by the end of the year. However, these forecasts could be further impacted by the potential impact of escalating war in the Middle East.

“At a time when nearly nine in ten people state the cost-of-living continues to be a major issue facing them and the UK economy, it’s critical that the Government seeks to go further and faster in driving wider economic growth during a period of international uncertainty.

“The Chancellor promised further announcements to tackle stubbornly high levels of youth unemployment. As part of this, it’s critical that she strengthens the Government’s Youth Guarantee. Eligibility should be expanded to include 22-24 year olds, and the scheme should kick in long before young people have been out of work for 18 months, as is currently proposed. Most importantly, the scheme must deliver employment placements that offer secure, well-paid jobs, and provide a platform for young people to progress further in their working lives.”