The UK government has typically held two major fiscal events each year – the Autumn Budget and the Spring Statement – with each updating on the economy’s performance, significant tax changes, fiscal measures and adjustments to allowances.
In 2024, however, Chancellor Rachel Reeves committed to limiting major tax changes to one fiscal event a year, meaning that she had no new tax policies to introduce at the Spring Statement on 26 March 2025.
Despite the absence of immediate changes to personal or business taxation, this Spring Statement remains highly relevant for individuals, business owners and accountants. The Office for Budget Responsibility (OBR) released its latest Economic and Fiscal Outlook (EFO) alongside the Chancellor’s speech, containing revised forecasts for growth, inflation, borrowing and debt. These forecasts inform the government’s approach to public spending, highlight existing economic challenges and shed light on how the government aims to meet its self-imposed “fiscal rules” in the years ahead.
The year so far has been characterised by continuing external uncertainties. The global economy continues to experience notable shifts in growth patterns, trade relationships and geopolitical concerns – many of them linked to the war in Ukraine, ongoing supply-chain disruptions and the tail-end pressures of the global pandemic. Higher interest rates in numerous major economies have raised the cost of government borrowing, while many countries confront stubborn inflation rates. Against this backdrop, the Chancellor’s Spring Statement takes on additional importance as it clarifies how the government plans to navigate these uncertainties and improve the UK’s fiscal position while attempting to foster growth and protect public services.
We have put together a guide to the Spring Statement and OBR report to provide a clear breakdown of the Statement’s content, its potential impacts on individual taxpayers and its significance for businesses.
It also aims to clarify how the government’s spending decisions may lead to opportunities or challenges for different sectors of the economy.
Finally, it explores the relevant announcements regarding the welfare system, which may affect workforce participation rates, and the additional funding for defence and infrastructure projects, which in turn could stimulate employment and growth in specific industries.
We can help
To discuss how any of the information and proposals in the Spring Statement and OBR report may affect you or your business, please get in touch with one of our experts.
