[26.03.25]
The Chancellor has today delivered to the House of Commons her Spring Statement. The key headlines were in relation to the overall economy, defence spending, welfare benefits, education and planning reform for housebuilding. The headlines include:
- The Office for Budget Responsibility (OBR) forecast GDP growth of 1.9% in 2026, 1.8% in 2027, 1.7% in 2028, and 1.8% in 2029. These figures are all slightly higher than the figures provided in the Autumn Statement 2024.
- Whilst the OBR has reduced the growth figure for 2025 from 2% to 1%.
- By 2027 inflation is expected to fall to 2%.
- An additional £2.2billion to go on defence spending, with a reduction in overseas aid.
- A £3.25billion boost to public sector reform, to include voluntary exit schemes for civil servants, AI tools and technology upgrades for the Ministry of Justice.
- Further investment in HMRC technology to crack down on tax evasion.
There were no announcements which will directly affect clients in relation to individual and business taxation or reliefs. However, as always, the devil is in the detail! We will follow up with more information on the Statement in the next few days.
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