Chancellor Rachel Reeves will deliver the Spring Statement to Parliament on Wednesday, 26 March 2025.
The Spring Statement is a financial update delivered by the UK Chancellor of the Exchequer, usually in March each year. It is one of the key events in the UK government's fiscal calendar, alongside the main Autumn Budget.
What is the Spring Statement?
The annual Spring Statement is a fiscal strategy update from the government, usually delivered in March each year.
Since 2017, the government shifted the main fiscal event to the autumn, making the Spring Statement primarily a supplementary update, though significant measures can still be introduced if needed.
For the most up-to-date information, please visit gov.uk.
What does the Spring Statement include?
- Updated economic forecasts: The Office for Budget Responsibility (OBR) provides fresh fiscal forecasts on the UK's economy, including GDP growth, inflation, borrowing, and debt levels.
- Public finances update: It offers a current snapshot of just how government revenues and spending are performing in comparison to previous projections.
- Policy announcements: While the Spring Statement is traditionally lighter than the Autumn Budget, it may include new measures, consultations, or smaller tax and spending adjustments.
- Review of economic progress: The Chancellor often uses it as an opportunity to provide reports explaining any progress on active policies and initiatives announced in previous budgets/ statements.
The statement helps Parliament, businesses, and the public stay informed and up-to-date on the current state of the UK economy, as well as the government's current fiscal strategy. It's contents can influence public spending, planning surrounding public services, and overall market conditions.
What time is the Spring Statement 2025?
The exact delivery time for the Spring Statement has not yet been officially announced. However, fiscal statements delivered to Parliament typically follow the Prime Minister's Questions, at around 12:30 PM.
Is there going to be a Spring Budget in 2025?
Chancellor Rachel Reeves has committed to holding only one major fiscal event per year (specifically the Autumn Budget).
Therefore, there will not be a separate Spring Budget in 2025. Instead, the Chancellor will deliver a Spring Statement (also known as the Spring Forecast) to update Parliament on the current economic outlook for the UK, along with fiscal policies.
While the Spring Statement is traditionally less comprehensive than the Autumn Budget, the current economic environment may necessitate the inclusion of spending cuts or tax adjustments to ensure adherence to fiscal rules.
What does “Budget” mean?
In the context of the government, "Budgets" (such as the Autumn Budget) refers to an official statement where the Chancellor sets out how much the government plans to spend that year, how they will raise money, along with any borrowing plans.
A budget is important as it displays how the government in power intends to manage the country's finances, support economic growth, and fund public services, while also demonstrating how they intend to keep debt under control.
What will be in the Spring Statement?
The Spring Statement 2025, delivered by Chancellor Rachel Reeves on 26 March, will focus on addressing the UK’s slowing economy. For 2025, the UK's growth forecast has been downgraded from 1.5% to 0.75%, with inflation expected to stay high until 2027.
Key measures are likely to include welfare spending cuts, especially targeting disability and incapacity benefits. Estimated cuts of £5 billion could reduce benefit values by around 16%, equating to an average loss of £1,150 per year for affected individuals.
While major tax rate increases are not expected, Reeves may opt to extend the freeze on personal tax thresholds beyond 2028, increasing tax revenue through fiscal drag. Possible inheritance tax reforms and ISA rule changes are also on the table.
These proposals have sparked concerns within the Labour Party and among charities, particularly regarding the impact on vulnerable groups. The Spring Statement will aim to balance fiscal responsibility with economic growth and social welfare commitments.
Is there a Budget in March 2025?
No, there will not be a full Budget in March 2025.
Instead, Chancellor Rachel Reeves will deliver a Spring Statement (also called the Spring Forecast) on 26 March 2025.
Will ISA allowance increase in 2025?
There has been speculation about potential changes to ISA rules, including proposals to reduce the Cash ISA allowance to £4,000 to encourage more investment in stocks and shares. However, these reforms are still under consideration and are unlikely to be included in the upcoming Spring Statement on 26 March 2025. Any significant changes to ISA allowances or structures would likely be announced in the Autumn Budget later this year.
Therefore, for the 2025/26 tax year, the ISA allowance is expected to remain at £20,000.
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