Government Fiscal Policy

The One Big Beautiful Bill Act will move Social Security fund depletion forward while benefiting only 24% of current recipients, according to the Center for Budget and Policy Priorities. The UK faces similar fiscal strain as gilt yields rise and oil prices above $80 threaten household bill reductions promised in the Spring Statement 2026.

Chancellor Rachel Reeves prepares a low-key Spring Statement as UK gilt yields rise and Iran conflict drives oil prices higher. Government borrowing costs had eased earlier, but renewed energy price inflation threatens fiscal headroom. The fiscal squeeze coincides with Fed leadership uncertainty as Jerome Powell's term expires in May 2026.