Spring Statement: Restoring stability in an uncertain market

Earlier today Rachel Reeves delivered the latest Spring Statement. Discover what this could mean for you or your business.

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Earlier today, Chancellor Rachel Reeves delivered her Spring Statement, setting out the Government’s latest assessment of the UK economy and its fiscal direction.

Positioning the current strategy as a steady response to a volatile global backdrop, Reeves pointed to progress in easing inflationary pressures, reducing borrowing and supporting living standards. She described the Government’s economic plan as the “right one for the country”, arguing that it is delivering greater stability and remains appropriate for the challenges ahead.

Alongside the Statement, the Office for Budget Responsibility (OBR) published its updated forecasts, providing a revised outlook for growth, inflation and the public finances over the coming years:

The Office for Budget Responsibility (OBR) has updated its outlook for how the UK economy is expected to perform in the coming years:

The economy will grow more slowly this year than previously thought

Growth for 2026 has been revised down to 1.1% (it was previously expected to be 1.4%)

Inflation is continuing to fall and is expected to return to normal levels later this year

This means everyday costs should rise more slowly, easing pressure on households.

Things are expected to improve after this year

Growth forecasts for 2027 and 2028 have been increased to 1.6%, suggesting a steadier path ahead once current global pressures ease.

Government borrowing is expected to fall

Borrowing is projected to be £18 million lower than previously forecast in the Autumn Budget update.

In summary

This year’s Spring Statement did not make any new tax policy measures (as expected) but focused on reinforcing the UK’s fiscal position. For a recap of the tax policy announcements made in the Autumn Budget please see our recent guide here.

For current planning opportunities please see below more information from our recent Year End Tax Planning Guide:

Affinia is a leading accountancy firm providing accountancy and business advisory services in London, Cambridge and the South East of England.

Private Client Tax

Find out more about reliefs and planning opportunities for your private wealth including:

Income Tax Planning
Investments
Boosting state pension
Capital Gains Tax Planning
Business Asset Disposal Relief (BADR)
Main residence and multiple homes
Inheritance Tax
Residency and domicile
Making Tax Digital

Business Owners

As a business owner, it is important to consider the reliefs and planning opportunities such as:

Profit Extraction for Limited Companies
Maximising Capital Allowances
Business Asset Disposal Relief (BADR)
Making Tax Digital for Income Tax
Preparing for Inheritance Tax changes
Trading vs Investment

Property Tax

Find out about the reliefs and planning opportunities for your property investments, including:

Company Owned Residential Property
Stamp Duty Land Tax
Property Capital Allowances
Property VAT Planning
Property Incorporation and Portfolio Restructuring
Making Tax Digital for property landlords

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Employers

As an employer you can find useful information regarding opportunities to review your payroll processes, such as:

PAYE and payroll
Share incentives and equity rewards
Apprenticeship levy and workforce planning
Off-payroll working (IR35)
Employment status and self-employed engagements
Salary sacrifice
National Minimum Wage
Termination payments
Benefits and expenses
Employment allowance

Explore everything in one place

Download our full 2025/2026 Year End Tax Planning guide for a clear, helpful overview, designed to make year end tax feel a little easier.

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