A guide to the Spring Statement 2025.
Our comprehensive guide to the Spring Statement 2025 looks at the key announcements and their potential impacts on your finances or business.
The chancellor delivered the government’s Spring Statement on 26 March 2025. After her impactful first Budget in autumn 2024, you might have been concerned about the announcements that would be included in it.
Reassuringly, she kept to her promise of one fiscal event per year and made no new tax announcements. Instead, she focused on measures to boost housebuilding and defence spending while making substantial welfare cuts.
The chancellor did announce that, due to global uncertainty and after the economy declined in January, the Office for Budget Responsibility (OBR) has downgraded its 2025 forecast for UK growth from 2% in October 2024 to 1% as of March 2025. She also noted the OBR’s long-term forecast, indicating that growth would increase for each year remaining in this parliament.
In addition to growth figures, the chancellor’s Statement introduced a range of measures designed to increase economic activity in the UK, as well as cost-saving initiatives, predominantly at state level, to reduce government debt.
Personal tax thresholds and allowances are set to remain unchanged
Those who were concerned the chancellor would announce sweeping changes that might affect their personal finances will be relieved, as the chancellor stuck to her pre-Spring Statement commitment to not increase personal taxes.
So, Income Tax thresholds and rates will remain unchanged, and thresholds are frozen until April 2028. As a result, your Income Tax liability is likely to rise in real terms due to fiscal drag.
Similarly, the rates and thresholds for paying Capital Gains Tax (CGT) and Dividend Tax will remain the same. No new pension reforms were announced in the Spring Statement either.
Before the Spring Statement, it was also widely trailed that the government was considering reducing the Cash ISA annual limit to £4,000 in a bid to encourage greater investment. The good news is the ISA subscription limit will remain at the current level (£20,000) in the 2025/26 tax year.
However, the government did note it will continue reviewing ISA reform options to improve the balance between cash and equities to earn better returns for savers, boost the culture of retail investment, and support its growth mission.
2024 Autumn Budget changes remain intact
In October 2024, the chancellor announced a series of tax-raising measures during the Autumn Budget, and many hoped the chancellor would review some or all of these measures. However, all remain intact.
These include Inheritance Tax (IHT) being levied on unused pension benefits from April 2027; Agricultural Property Relief and Business Property Relief being reduced from April 2026; Employer National Insurance contributions (NICs) rising from April 2025, from 13.8% to 15%, with a fall in the threshold at which employers start paying NICs.
Our Spring Statement guide
Our comprehensive guide to the Spring Statement 2025 looks at all the key announcements and what they could mean for your personal financial plans and/or for your business. Please feel free to read or download it by clicking on the link below.
If you would like help in trying to understand what the Budget and Spring Statement changes mean for you and how they might change your own personal financial plans, please do not hesitate to contact us.
Please note
The content of our Spring Statement guide is intended for general information purposes only. The content should not be relied upon in its entirety and shall not be deemed to be or constitute advice.
While we believe this interpretation to be correct, it cannot be guaranteed and we cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained within the guide. Please obtain professional advice before entering into or altering any new arrangement.
Our Spring Statement guide