On Wednesday 26th March 2025, Chancellor Rachel Reeves presented her Spring Statement to parliament. Despite a backdrop of low economic growth and increasing government borrowing costs, the Chancellor remains committed to her ‘non-negotiable’ fiscal rules that aim to bring stability to the economy and security for working people. With further borrowing ruled out and a determination not to announce further tax changes, her focus has been on government spending.
Headlines included:
- An ongoing commitment to generate economic growth, despite short-term forecast growth levels being revised downwards from 2% to 1%.
- Confirmation of increased defence spending in a rapidly changing world.
- Changes to the welfare system, including stricter tests for personal independence payments.
- Streamlining the civil service, with an accelerated new Transformation Fund.
- Increased investment in social and affordable housing. • Tackling skills shortages, including in the construction sector.
- A crackdown on tax evasion.
The results of a spending review will be announced on 11th June 2025. This will allocate government spending for the three years from 2026/27 to 2028/29.
For the full summary including a breakdown of new tax rates for businesses and individuals, please click the link below.
LWA 2025 Spring Statement Summary.pdf
Below are the details for the Autumn Budget delivered on 30th October 2024 by Chancellor Rachel Reeves as she presented her first budget to parliament.
Headlines included:
- Immediate increases to capital gains tax rates with further uplifts in relation to some business disposals from both April 2025 and April 2026.
- Immediate increases to Stamp Duty Land Tax, including for those buying residential property when they already own at least one dwelling.
- Confirmation that 20% VAT will apply to private school fees for the school term beginning in January 2025.
- Increased costs for many employers from April 2025 through both increases to the national minimum wage and significant reforms to employers’ national insurance contributions.
- Another change in approach for businesses utilising double-cab pick up vehicles, coming into effect in April 2025.
- Plans to restrict inheritance tax agricultural and business property reliefs from April 2026.
- Plans to include an individual’s undrawn pension fund in their inheritance tax estate from April 2027.
Click here to down LWA's 2024 Autumn Budget summary PDF for the full details on how the Budget affects individuals and businesses in varying scenarios.
Click here to view a separate document detailing all the Tax changes as a result of the 2024 Autumn Budget for different types of businesses, property owners and individuals.