Did Spring Forecast 2026 boost tech job-seekers? It certainly leaves a lot to AI

As the chancellor’s update ‘only whispers’ to Britain’s IT industry, tech job-hopefuls must ‘rise above the noise,’ resist ‘seeing what sticks’ and instead, prioritise those firms ‘hiring, investing, expanding.’

IT job board users may be scratching their heads at Spring Statement 2026  making little-to-no intervention in the UK’s “tough” technology jobs market, despite it pinning a lot on AI.

That’s the consensus being sounded yesterday - about a month since the March 3rd statement - of technology skills captains, including those like top recruiter VIQU IT, who spoke yesterday to Free-Work exclusively.

What IT industry analyst first spotted Spring Statement’s dependence on AI?

But it was Dale Peters of IT services market analyst house TechMarketView who first spotted the government’s reliance on AI, pretty much as soon as the chancellor sat down on the afternoon of Tuesday, March 3rd.

“The OBR…has formally embedded Artificial Intelligence adoption as a driver of total factor productivity recovery in its central forecast,” Peters began.

“It highlights that if productivity growth were 1.5% a year over the forecast period – compared to its underlying medium-term assumption of 1.0% - due, for example, to a more optimistic scenario for the impact of AI, borrowing could be £50bn lower in 2030-31.

“However, this cuts both ways: if the impact of AI is less than expected, borrowing could be significantly higher.”

What did Spring Forecast 2026 say about Artificial Intelligence?

In her Spring Statement 2026 speech, Rachel Reeves said: “To go further in backing innovation and harnessing the power of AI, so that entrepreneurs and innovators thrive here in Britain and so that working people reap the rewards.”

Asked by Free-Work how it scores the government’s actions on AI, the Association of Professional Staffing Companies (APSCo) implied there are both good and bad aspects for IT job candidates.

On the one hand, it is “sound” for Rachel Reeves to boost AI investment, given a “persistent skills mismatch,” unemployment at 5.3%, and youth unemployment at a “staggering” 16%.

And the £500m Sovereign AI Fund, £2bn for Quantum Computing, and Growth Labs facilitating sandbox safety testing in live markets “will create jobs,” APSCo told Free-Work.

Will the UK government’s AI investments boost highly skilled job sectors?

 On the other hand, such investments “alone” won’t “create the conditions needed for growth…in highly skilled IS8 sectors,” such as Digital/Technologies (which includes Software, IT & Emerging Tech).

Moreover, amid a 10% annual fall in entry-level IT job creation, the government has set up the AI Economics Institute to monitor AI’s “impact” on roles, the association pointed out.

What tech jobs is AI displacing?

“Coding jobs are already being displaced by Artificial Intelligence,” Tania Bowers, APSCo’s director of global public policy, told Free-Work.

“With upskilling and re-skilling, there are [employment] opportunities, although [those will be] at a higher level than the government’s free AI Skills campaign and apprenticeships [can facilitate].

“Therefore, UK technology specialists should focus on upskilling. And on more resilient public sector opportunities.”

Which technology services suppliers are well placed for growth?

In its assessment after Spring Statement 2026, TechMarketView (TMV) confirmed that the government sector appears to offer a comparatively safer haven to IT services providers.

“Technology suppliers [to the public sector] focused on protected areas of spending, particularly health and defence, remain well placed for growth.”

But the analyst house’s research director, Mr Peters, appeared to characterise AI as a double-edged sword, too.

Has higher AI investment already benefited the UK?

On the plus side, he said headwinds from higher US tariffs and trade uncertainty have already been “broadly offset by higher investment, particularly in new technology such as AI.”

However, following the March 3rd statement, the Office for Budget Responsibility said it was “not yet clear what impact AI will have on the labour market”.

And perhaps ominously for those seeking their first technology job, the OBR does “explore a technological displacement scenario.”

What does Spring Forecast 2026 mean for technology suppliers?

“For technology suppliers,” continued TMV’s Mr Peters, “the Spring Forecast reinforces the situation presented at Spending Review 2025 and Budget 2025.

“Having a strong AI and automation proposition remains essential, but suppliers will need to work harder to ‘rise above the noise,’ requiring a strong partner ecosystem and referenceable deployments.”

He also recommended those providing IT skills/services to position their propositions “around workforce augmentation and measurable productivity gains,” rather than “displacement narratives.”

How does Spring Statement 2026 compare to Autumn Budget 2025?

Matt Collingwood, managing director of contract and permanent tech staff jobs agency VIQU, also has Labour’s two previous fiscal set pieces in mind.

But compared to Autumn Budget 2025 and even Budget 2024, “Spring Statement 2026 landed with only a whisper” to the IT staffing market.

“And since Q4 2025, we’re seeing more technology job candidates, fewer roles and client-side hiring managers under pressure to do more with less,” VIQU’s boss, Mr Collingwood, also told Free-Work.

How is the availability of IT job candidates, and IR35?

“Yet at the same time, high IT job candidate availability is weakening the power of techies operating through their own limited company to secure, even negotiate, off-payroll, ‘outside IR35’ opportunities.

“Only this month, so the very same month as Spring Forecast 2026, we’re hearing comments that IT contractors won’t welcome.

“For example, ‘Why do we need to engage a Personal Service Company – a limited company – off-payroll, when we can easily identify one who’ll work ‘on-payroll,’ with us directly or via an umbrella company?’”

How many hirers are looking at high availability in relation to IR35?

VIQU IT acknowledged that it was only a “small” proportion of the total number of employers on its books which, for IR35 purposes, are leveraging higher IT job candidate availability.

But the Birmingham-headquartered tech staffing agency says the legislative pressure on the potential hirers of technologists is mounting.

Are ‘Open to Work’ banners increasing on LinkedIn?

The agency says: “Before Spring Statement 2026, and even going back beyond Spring Statement 2025, we’ve seen a huge increase in the number of IT workers seeking PSC or permanent positions switching on their green ‘Open To Work’ LinkedIn banners.

“Yet for many UK businesses, April 2026 is going to be the start of some heavy lifting.

“Rising National Living Wage, sustained Employer National Insurance costs, and the continued rollout of the Employment Rights Bill are all increasing the cost of hiring tech and other workers for UK businesses.”

How are hiring intentions being described as 2026/27 starts?

Speaking last night, so just a week before 2026/27 commences on April 6th 2026, APSCo confirmed that “hiring intentions remain subdued.”

The association, whose members place workers in IT assignments across the UK, urged:

“A two‑track skills strategy is essential - one that includes employer-designed progression pathways, more flexible Growth and Skills Levy spending options, and facilitated career transitions to support longer working lives. So far, Skills England is under‑delivering.

“With employers and recruiters acutely aware of geopolitical risk and facing extensive regulatory changes…the government must recognise the scale of change required to implement the Employment Rights Act, delay aspects where economic conditions necessitate it, and - critically - listen to business.”

How many applicants per vacancy for management consultancy roles?

Peter Brown, the founder of Exevion, an agency specialising in management consultancy placements, last week took to LinkedIn:

“The jobs market is tough…[and the evidence is partly that] we get over 500 applicants per live role.

“There are more people looking [for jobs], fewer obvious positions, and a lot more competition for anything decent.”

Is a scatter gun approach to job applications recommended?

Brown advised against professional job-seekers “applying broadly” to many roles and just “seeing what sticks.”

“[That’s] why it’s not working for a lot of people,” he posted on March 24th. “[Instead], I would treat [the job application process] more like a sales process.

“Start by picking an industry that’s actually growing. Not everything is. Some sectors are expanding, hiring, and investing; others are slowing down.

“Then, get specific. Pick a handful of companies within that space and understand what they’re trying to do. Where are they growing? What are they likely struggling with? Where could someone like you add value?”

What separates successful job applicants in 2026 from the unsuccessful?

The boss of Exevion revealed that in today’s “tougher” hiring market, “being targeted and relevant” with job applications is what separates the successful from the unsuccessful.

Issuing some advice of his own, TechMarketView’s Dale Peters reflected through the lens of Spring Statement 2026.

“Looking beyond the OBR's forecast [chiefly, UK growth in 2026 of 1.1%, down from 1.4% in Q4 2025, and compared to projected growth of 1.6% in 2027 and 2028], the UK government's direction of travel is set.

“It is dependent on AI delivering the step change in productivity required to accelerate economic growth.

“However….this ambitious AI vision is built on shaky foundations, with legacy technology, poor data quality and accessibility, and skills shortages remaining significant barriers to effective AI implementation.”