Chancellor of the Exchequer Rachel Reeves delivered an update on the economy in her first Spring Statement last week, promising no further tax rises and a commitment to her earlier pledge of only one major fiscal event per year. Income Tax, employee National Insurance contributions and VAT remain unchanged, with the focus of the Statement being on economic growth.

The Office for Budget Responsibility (OBR) have reduced their forecast for the UK’s growth from 2% to 1%, but Rachel Reeves emphasised that the growth forecast for all G7 countries has been downgraded, and that the OBR is predicting growth in subsequent years.  

Additional funding was announced for HMRC to boost efficiency and focus on tackling tax evasion and the rollout of Making Tax Digital for Income Tax was confirmed, with sole traders and landlords with qualifying income over £20,000 joining the scheme from April 2028.

Of course, these announcements follow a raft of measures announced in the Budget last October – which you can read about in our earlier blog post. 

Although there were no major unexpected declarations in the Spring Statement, if you are concerned about how any of the earlier Budget announcements might affect you and your business, do get in touch. We’d be happy to have a coffee and a chat, hopefully putting your mind at ease about what the changes mean for you.