Title page 1
Contents 4
Executive summary 6
1. Fiscal outlook 7
2. Fiscal consolidation 10
Moving to a broad-based consumption tax 10
Welfare spending ceiling 11
Tax simplification measures 12
3. Promoting growth and stable public finances in the medium and long term 16
Annex 20
A. Financing 20
B. Forecast 21
References 26
Tables 8 Table 1.1. Borrowing against the OBR profile, April to July 2026 (£ billion) 8
Table 1.2. The March 2026 OBR fiscal baseline (£ billion unless stated) 8
Table 2.1. Estimated gains from VAT broadening 11
Table 2.2. The fiscal impact of the welfare ceiling (£ billion) 12
Table 2.3. Sample SDLT calculations on the purchase of an existing home 13
Table 2.4. The new income tax schedule 15
Table 2.5. Combined marginal rates of income tax and employee National Insurance 15
Charts 7
Chart 1.1. Forecasts for GDP growth and CPI inflation in 2026 7
Chart 1.2. Forecast borrowing, net debt interest and public sector net debt 9
Annex Tables 20 Table A.1. First-year financing, 2027-28 (£ billion) 20
Table B.1. Summary of borrowing forecast (£ billion unless stated) 21
Table B.2. Economic assumptions before the Alternative Budget (annual change, per cent, unless stated) 22
Table B.3. Policy scorecard (£ billion) 23
Table B.4. Reconciliation of current receipts (£ billion) 24
Table B.5. Reconciliation of expenditure (£ billion) 24
Table B.6. Borrowing reconciliation (£ billion) 25
Table B.7. Net debt reconciliation (£ billion) 25