UK Government Spring Statement 2025

Chancellor Rachel Reeves MP delivered a Spring Statement for 2025 to MP’s

in Parliament on 26th March. You can also read the associated HM Treasury Press release here.

Some of the main announcements that are of relevance to our sector include:

• Predicted growth has been downgraded from 2% to 1% for this year by the Office for Budget Responsibility (OBR) but it has been upgraded for the next four years.

• Consumer Price Inflation (CPI) predicted to hit 2% target by 2027 but it is forecast to average 3.2% this year.

• The government plans to invest in employment, health, and skills support from 2026-27, with funding increasing to £1 billion annually by 2029-30, to assist individuals in entering or remaining in the workforce and reducing long-term economic inactivity.

• £1 billion will be provided for the British Business Bank to enhance access to finance for smaller businesses through Start Up Loans and other schemes.

• Reduction of UK Government departmental admin budgets by 15% by the end of the decade. 

• HMRC is expanding counter-fraud capability to increase the number of annual charging decisions for the most harmful fraud by 20%. Criminal investigations will focus on delivering a strong deterrent. This will include tackling those who undermine legitimate trade and small business.

On top of these announcement, the Devolved Governments will receive an additional £58 million through the operation of the Barnett formula in 2025-26 - This includes £28 million for the Scottish Government. The Scottish Government’s block grant funding from 2026-27 onwards will be confirmed at Phase 2 of the Spending Review, which concludes on 11 June 2025.