Spring Statement 2025
Watch as MHR’s legislation experts James Manning and Rachel Dove unpack the Chancellor’s 2025 Spring Statement along with hosts Andy and Isabella.
This statement is not a formal Budget, given that Labour committed to delivering one per year. It’s more of an update on the economy and progress since the Autumn Budget.
The Autumn Budget saw the Chancellor announce various economic and fiscal changes, such as an increase of 1.2% in Employer National Insurance Contributions and a National Minimum Wage increase to £12.21 per hour. The impact of these changes will be mixed, but the National Insurance contributions will likely come with financial challenges, particularly for smaller businesses.
In the Spring Statement today, Rachel Reeves pointed out that the “global economy has become more uncertain” since the last Budget. Other key points from the Statement included:
The Office for Budget Responsibility (OBR) has revised down 2025’s growth forecasts from 2% to 1%
Reeves announced that the government’s budget will move from a deficit of £36.1bn in 2025-26 and £13.4bn in 2026-27 to a surplus of £6bn in 2027-28, £7.1bn in 2028-29 and £9.9bn in 2029-30
Contrary to what some were expecting, the Spring Statement did not include any further tax increases
There is £1bn to support people to get back into employment, as well as £400m to support jobcentres
Planning reforms will see housebuilding at a 40-year high by the end of 2030
A construction training package will be launched to train up to 60,000 workers to aid in building these homes
Addressing the cost-of-living crisis, Reeves stated, “Households will be on average over £500 a year better off under this government”
Stay prepared for April’s National Insurance changes
Get informed with everything you need to know on upcoming National Insurance changes and find out the key strategies you need to take to manage rising costs without sacrificing employee wellbeing.
