2025 Spring Statement - what to expect

26 Mar 2025

Chancellor Rachel Reeves will present the 2025 Spring Statement today. We will keep you up to date on the key Spring Statement announcements and supply a summary, which will appear on our website.

Economic growth has faltered since Ms Reeves' 2024 Autumn Budget, which saw a record £40 billion in tax rises.

However, data published recently by the Office for National Statistics (ONS) showed that the UK inflation rate fell to 2.8% in the 12 months to February.

The Chancellor has set herself strict limits on public borrowing and her fiscal headroom is expected to have dropped significantly from the £9.9 billion reported last October, leaving her with a set of tough choices around tax rises and spending cuts.

The Institute for Fiscal Studies (IFS) recently stated that the need for tax hikes and greater spending is a 'fiscal trap of the Chancellor's own making', with her rules around borrowing having left Britain's economic policy 'exposed to global changes'.

Three areas of spending are thought to be safe from cuts – defence, the NHS and schools. The increase in the defence budget, which experts believe could reach £2.2 billion, is largely being paid for by a cut in foreign aid.

The Office for Budget Responsibility (OBR) will also present its Spring forecast, which analysts expect will have had to take into account a slower economy and higher government borrowing costs.