Spring Statement Live: Reeves to pitch stability; Iran war rocks bond markets

Welcome back to the City AM liveblog.

Today, Rachel Reeves will deliver her Spring Statement – a fiscal ‘non-event’ which is likely to be overshadowed by the brewing geopolitical conflict and market fallout.

But that distraction may be welcomed by the Chancellor, who is understood to be looking for a lowkey occasion when she takes to the despatch box, in a bid to not disturb bond markets.

Reeves is expected to defend the government’s economic plan, insisting it is “right” as the world becomes even “more uncertain”.

She is expected to focus her message on the cost of living, falling inflation and lower interest rates, adding that the UK economy was “building growth not on the contribution of a few people or a few parts of the country, but in every part of Britain with a state that doesn’t stand back, but steps up”.

Though this faces being overshadowed by the brewing tensions in the Middle East, which sent havoc through markets and commodities on the home front.

Economists are sounding the alarm on inflationary consequences after UK gas prices surged by over 90 per cent in just under a week.

And on the political front, the government is facing heat from the US amid the war in Iran.

President Donald Trump has said he is “very sad” with Prime Minister Sir Keir Starmer for his delayed decision to allow the US to use its military bases.

Trump said the UK-US relationship “is obviously not what it was”.

We’ll be bringing you the latest on the Spring Statement and all the reaction to the war in the Middle East.

Here’s a few Spring Statement curtain-raisers to get you started:

• Reeves delivers Spring Statement as war rages and markets tremble
• What does Rachel Reeves’ ‘low-key’ Spring Statement mean for markets?
• Reeves to deliver ‘stability’ Spring Statement amid turmoil in Iran