Budget Hub
Spring Statement 2025
On 26 March 2025, Chancellor Rachel Reeves presented her Spring Statement to parliament.
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.
Although there were no major changes announced, the most notable aspect of the Spring Statement is what was left unsaid. Below are the key announcements and resources relevant to you and your business.
Key Announcements
- Making Tax Digital (MTD) for Income Tax
A new policy paper announced the expansion of MTD for Income Tax to include more small businesses from April 2028, extending to sole traders and landlords with income over £20,000
- R&D Tax Relief Advance Clearances
HMRC has opened a consultation until 26 May 2025 to better target non-compliant companies while assisting those making accurate claims. Discussions include mandatory advanced assurance for high non-compliance areas, voluntary assurances for high-potential companies, and limiting the service to customers using registered agents
- Upcoming Spending Review
The results of a spending review, which will allocate government spending for the three years from 2026/27 to 2028/29, will be announced on 11 June 2025
- Reduction in Tax Evasion
The Chancellor highlighted the government's commitment to reducing tax evasion, with investments in technology and HMRC capacity expected to raise an additional £1bn in revenue
- Addressing Skills Shortages
Efforts will be made to tackle skills shortages, particularly in the construction sector
- Investment in Housing
There will be increased investment in social and affordable housing
- Civil Service Transformation
The civil service will be streamlined with the introduction of an accelerated new Transformation Fund
- Welfare System Overhaul
Stricter tests for personal independence payments are part of the changes to the welfare system
- Boosting Defence Spending
In response to a rapidly evolving global landscape, defence spending will see a significant increase
- Steadfast Commitment to Economic Growth
Despite a downward revision in short-term growth forecasts from 2% to 1%, the government remains dedicated to fostering economic expansion.
The latest Budget was packed with policy announcements, but according to the Office for Budget Responsibility (OBR), these policies will not really change the UK’s growth outlook over the next five years. Compared with the forecast it prepared in March 2025, the OBR has lifted its expectation for growth this year but then marks it down every year through to 2030. If you were hoping for a clearer sense of the economy’s direction after the Budget, the message is mixed at best. No Further NI Increase One point of relief from the Budget was what didn’t happen. After last year’s significant rise in employers’ National Insurance contributions, there were no major new tax costs for employers. However, meaningful pro-business measures were also limited and could leave you wondering where business growth is going to come from.
READ MOREOverview
Many possible changes were the subject of speculation leading up to the Budget:
this list includes things that have been ruled out, as well as changes that the Chancellor announced
These key points include measures that were announced previously but are about to come into force
Measures which will not take effect until future dates are listed separately below
Implemented immediately
100% CGT relief for disposals of shares to Employee Ownership Trusts is restricted to 50% from 26 November 2025
Latest Budget Announcements
Previous Budget Announcements
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