Uk Government Spring Statement 2025

On 26 March 2025, the UK Chancellor Rachel Reeves presented her Spring Statement to Parliament. Despite a backdrop of low economic growth and increasing government borrowing costs, the UK 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.

Please download our Spring Statement summary to read more using the following link:-

Spring statement

The information in this blog provides only an overview of HMRC guidance and legislation in force at the date of publication and no action should be taken without consulting the detailed HMRC guidance and legislation or seeking professional advice.  Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this blog can be accepted by the firm.

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