Published: 03/04/2025 By Oliver O'Brien
A reserved budget focusing on spending cuts, defence investment, and government efficiency was delivered by Chancellor Rachel Reeves yesterday. We’ve put together the important Spring Budget key takeaways. We have created a short video which you can watch over on our Youtube channel hereEconomic Forecast
Halved growth prediction to 1%, from 2%, for the year
Upgraded forecast for the next four years
Inflation forecast to hit 2% target by 2027
Tax
Status quo maintained– Income, Capital Gains, IHT, VAT & National Insurance unchanged
Focus instead on enhancing HMRC’s ability to tackle tax evasion
Pledge for 400 more HMRC staff to tackle non-compliance, including inform & reward system
Welfare
Health-related Universal Credit increases now frozen
Under 22s can no longer claim health-related UC
Standard UC allowance to rise by £14 a week by 2030
Stricter eligibility tests for Personal Independent Payments
Housing
Estimated boost of 305,000 homes a year by 2029, due to planning reforms
Continued investment to train workers in construction sector
Defence
Defence spending up another £2.2bn, taking it to 2.36% of national spending
Plans to increase further, to 2.5% by 2027
Funded by reducing overseas aid from 0.5% to 0.3% and from treasury reserves
Public Services
Everyday government spending reduction target of £6.1bn by 2030
Target to reduce government admin costs by 15% by 2030
Get in touch if you have any questions on how it may affect your finances.