Critics have called on Philip Hammond to use the statement to inject money into services, such as the NHS and infrastructure.
However, the chancellor is set to give an update on the economy and is not expected to reveal any major tax or policy changes.
A stamp duty cut for first-time buyers was announced in the 2017 Budget, and the Spring Statement could be used to provide insight on how the tax change and other housing policies have been received.
Calls for economic investment
TUC general secretary Frances O’Grady said: “The chancellor should not wait until the autumn budget to act.
“We need urgent action to strengthen the economy and get wages rising.
“He must boost public sector pay and invest in our schools and hospitals.”
The majority of the statement is likely to focus on spending and borrowing forecasts.
Ian Stewart, chief economist at Deloitte, said: “Having wisely switched to a single Autumn Budget, the Spring Statement will be a pared back, low-key event. Shorn of tax and spending decisions, pretty much all that’s left in the Spring Statement is an update of the Office of Budget Responsibility’s November forecasts.”
Hammond could also give an update on Brexit costs.
Michael Hewson, chief market analyst added: “The chancellor will be pleased to see that he is on course to reduce government borrowing by at least £10bn more than expected due to higher than expected tax receipts.
“He is likely to find himself under pressure to loosen the purse strings, however that may have to wait until October when we have a better idea of the type of deal that is on the table from the EU.
“We are expected to see some detail on the EU divorce settlement payments in the wake of the recent deal signed by Prime Minister May in December.”
