Rachel Reeves presents spring budget: Economic stability amid tensions with Iran

Rachel Reeves's address to the House of Commons was an attempt to calm markets after a period of turbulence and to outline a path of slow but stable growth for the British economy. The Chancellor announced that the OBR forecasts a fiscal headroom of £23.6 billion by the turn of the decade. Although GDP growth this year is expected to be lower than previous assumptions, acceleration is forecast for the coming years. Reeves stressed that the government does not currently plan new tax increases, although analysts point out that real burdens will still rise due to earlier legislative decisions. A key element of the discussion became the geopolitical context, specifically the escalation of the conflict with Iran. The Chancellor noted that the United Kingdom had no legal basis for a direct attack on Iran, and London's decisions would be made independently of trade relations with the United States. Nevertheless, commodity markets are showing significant nervousness. Oil prices reacted with an increase, which immediately translated into a weakening of the pound sterling and concerns about a renewed rise in the cost of living for British households. The stability championed by Reeves thus appears to be hostage to external factors. Since the 2008 financial crisis and the subsequent Brexit, the British economy has struggled with low investment dynamism and chronic political instability, which affects the country's creditworthiness.Critics and business leaders accuse the government of "safe inaction." They point out that the lack of bold fiscal impulses combined with the threat of stagflation could lead to stagnation in living standards. However, Reeves defends her "keep calm and carry on" strategy, arguing that the priority is to rebuild the foundations after years of uncertainty.