Fiscal Risks and Sustainability Report 2026
House of Commons · Written Statements · 7 Jul 2026 · 1 speech · Official Report
Since I became Chancellor, the UK economy has grown by 2.1%-the fastest growth among European G7 economies in that period, demonstrating that this Government’s economic plan is the right one. Growth is the only way to deliver sustainable rises in living standards, and, after falling by 2.3% in the previous Parliament, living standards-real household disposable income per capita-have grown by 1.1% so far this Parliament. We have increased our resilience to global shocks by building stronger public finances and bringing down borrowing-which is less than the G7 average this year-while bringing in an additional £120 billion in public investment through changes to our fiscal rules. The Office for Budget Responsibility’s fiscal risks and sustainability report 2026, which was laid today, confirms the need to boost growth and maintain sustainable public finances. This demonstrates the importance of this Government’s decisions to reduce the deficit, unlock a step change in public investment, and strengthen the tax base by announcing electric vehicle excise duty, in order to support a stronger fiscal position. The FRS is an important part of the Government’s fiscal risk management framework. The report fulfils the OBR’s duty under the Budget Responsibility and National Audit Act 2011 to assess and report on the sustainability of the public finances and the key risks facing them. This year’s FRS provides a detailed assessment of the risks to long-term fiscal sustainability. Since the...