Spring Statement 2025 – when is it and what you can expect
The Spring Statement for 2025 will be delivered by Chancellor Rachel Reeves on March 26, 2025, following Prime Minister’s questions. The Office for Budget Responsibility (OBR) will release its updated economic forecast. This includes the UK’s economic performance and cost of living estimates.
While tax increases are not expected, due to the 2024 Autumn Budget ruling out further hikes, the Chancellor may announce potential reforms. These may include changes to the welfare system and tax-free ISA limits. Speculation exists about possible delays or changes to proposed inheritance tax increases and capital gains tax rises for businesses.
What is the spring statement?
The OBR, who monitors the government’s spending plans and performance, will publish its forecast on the UK economy on Wednesday 26 March. This is its updated economic forecast for the UK.
This report also provides estimates on the cost of living for households and its opinion of if the government is able to adhere to its self-imposed borrowing and spending rules.
At Spring Statement, the Chancellor will present to Parliament the main findings of this report alongside making a Spring Statement from the government on the state of the economy. Following the Chancellors speech, the opposition will respond to Parliament.
When is the Spring Statement 2025?
The Spring Statement has been confirmed to be delivered to parliament by the Chancellor on 26 March 2025. This usually follows Prime Minister’s questions and starts around 12.30pm.
Will there be taxation changes or reforms in the Spring Statement?
In the 2024 Autumn Budget, which gave rise to £40m of tax rises, the Chancellor ruled out further tax rises, confirming the Government will stick to one fiscal event each year.
However, Rachel Reeves faces difficult decisions due to the performance of the UK economy and global events effecting the world economy. This may lead to some announcements in the Spring Statement or ahead of it.
Read more about the 2024 Autumn budget tax rises here
What is the Chancellor likely to announce in the Spring Statement?
With an underperforming economy and global economic issues such as UK trade tariffs, there is speculation in the media as to whether Rachel Reeves will break self-imposed rules on borrowing (or indeed one fiscal event a year).
The OBR’s is widely expected to announce that the £9.9bn financial buffer (to meet budget rule by the 2029-30 financial year) is no longer available.
The treasury is drafting spending cuts amounting to billions of ponds, including changes to the welfare system.
Ther has also been much discussion regarding reducing the £20,000 tax-free annual limit in cash ISAs. However more recently, it has been reported that these are not likely to materialise. (However, this does not rule out future reforms, and an announcement on this may appear).
There is also media debate on whether the protests by farmers and business owners on the inheritance tax increases will result in changes or delays. Similarly, the proposed rises in capital gains tax for businesses, by means of reducing Business Asset Relief many also see some changes or delays to the intended increases.
Whether these concerns fall on deaf ears remains to be seen. It will also be interesting to see if any concessions are made to the increases in National insurance for employers.
Whether any other tax changes or spending cuts will materialise in the Spring Statement or subsequently, remain to be seen.
Alexander & Co – expert tax advice
Alexander & Co has a comprehensive tax team advising both businesses and individuals on a wide range of issues. We provide specialist advice in many business sectors.
Out team will be watching the Spring Statemen as it happens on 26 March. We will update clients once we have reviewed any announcements and changes and publish this on our website.
If you require any advice relating to the issues in the Spring Statement, or wider tax advice, please contact us. You can email us at info@alexander.co.uk, telephone one of our offices or use the contact forms on this website.
