On 26 March 2025, Chancellor Rachel Reeves presented her Spring Statement to parliament.
We have put together a summary to highlight the key points that may affect you and your business as we head into the new tax year.
Here’s a link to it if you would like to download it for future reference.
Despite a backdrop of low economic growth and increasing government borrowing costs, the Chancellor remains committed to her ‘non-negotiable’ fiscal rules that aim to bring stability to the economy and security for working people. With further borrowing ruled out and a determination not to announce further tax changes, her focus has been on government spending.
Headlines included:
– An ongoing commitment to generate economic growth, despite short-term forecast growth levels being revised downwards from 2% to 1%.
– Confirmation of increased defence spending in a rapidly changing world.
– Changes to the welfare system, including stricter tests for personal independence payments.
– Streamlining the civil service, with an accelerated new Transformation Fund.
– Increased investment in social and affordable housing.
– Tackling skills shortages, including in the construction sector.
– A crackdown on tax evasion.
The results of a spending review will be announced on 11 June 2025. This will allocate government spending for the three years from 2026/27 to 2028/29.