Spring Statement 2025 – At a Glance
The Chancellor of the Exchequer, Rachel Reeves, delivered her Spring Statement today (26 March 2025). As expected, it focused on stability, investment and reform – with no major tax announcements. Here’s a quick roundup of the key points for business owners and individuals:

No new tax changes
The Spring Statement offered no surprises on tax. The Chancellor stuck to her word, making no changes – allowing previous announcements (like National Insurance cuts and Minimum Wage rises from Autumn) to go ahead as planned.

Economic growth forecast halved
The OBR revised the UK’s growth forecast for 2025 down to 1%, from 2% last Autumn. Future years are projected at: 1.9% in 2026, 1.8% in 2027, 1.7% in 2028, and 1.8% in 2029.

Inflation easing slightly
Inflation is expected to average 3.2% in 2025.

Public investment boost
An additional £2bn a year in capital spending was announced, plus a new £3.25bn fund to support public service reform.

Support for construction and housing
£13bn in new investment over the Parliament is aimed at construction skills and accelerating housebuilding, with a goal of 1.5 million homes.

Defence spending increase
Defence spend will rise to 2.5% of GDP by 2027, including a £2.2bn increase next year.

Universal Credit uplift
The standard allowance will increase from £92/week (2025/26) to £106/week by 2029/30.

Focus on tax compliance
Measures to tackle tax evasion and increase HMRC debt recovery will ramp up from 2025, including new staff and funding.

Looking Ahead – What’s Next?
With no new tax changes in the Spring Statement, attention now turns to the Autumn Budget – expected later this year. The Chancellor has committed to limiting tax changes to one fiscal event per year to give businesses more stability.

That said, with recent changes in the economic landscape and a tighter fiscal position, it’s possible more adjustments will be on the cards when Autumn comes around.

In the meantime, here are a few important changes coming in April 2025:

• Minimum Wage updates from 1 April 2025:
  • £12.21 per hour for ages 21+
  • £10.00 for ages 18–20
  • £7.55 for ages 16–17 and apprentices
  • Current and historical rates can be seen here
• National Insurance changes from 6 April 2025:
  • Employer NICs increase to 15% (up from 13.8%)
  • The secondary threshold drops to £5,000 (from £9,100)
  • The Employment Allowance increases to £10,500 (from £5,000), and the previous £100,000 threshold is being removed
  • Rates and thresholds for employers 2025 to 2026 can be found here

We hope this quick summary helps.