The UK government claims that it is pro-growth and pro-enterprise. The reality is familiar to all that have experienced past Labour governments. Taxes are rising. There is an increase in the cost of employment combined with an increase in regulatory obligations. Initial comments from the banking sector are not entirely supportive. It is claimed by many observers, that the impact of government policy will hamper business investment and hiring.
Annette Spencer, Chief Executive, Association of Corporate Treasurers (ACT)
Corporate treasurers will welcome the Chancellor’s positive aspirations towards creating economic growth but there were few new announcements for business that will increase confidence for investors in UK plc.
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Against a climate of uncertainty and volatility in the new world and economic orders, treasurers and their organisations are looking for a reliable UK market and business environment as they navigate shifting geopolitical situations, potential tariff changes and increasing tax burdens through higher employer NI contributions.
We would have liked to see developments that would benefit the economy more widely, such as a faster implementation of some of the measures previously announced by the Chancellor in her speech on growth in January 2025. And we continue to await further details on the Government’s Industrial Strategy and the Financial Services Growth and Competitiveness Strategy. While we welcome recent measures, such as the Financial Conduct Authority’s new strategy commitment to support growth, the jury is still out on whether the Chancellor is delivering the pre-conditions for a revival of investor confidence and growth.
Theo Chatha, CFO, Bibby Financial Services
The Chancellor’s Spring Statement will be a huge disappointment to the UK’s small and medium sized enterprises. We know 87% of SME business leaders are eager to invest and nearly half were deferring major investment decisions until after today’s Statement.
Will SMEs feel more confident after today’s announcements? Likely not, and we could see a worrying continuation of this “wait and see” approach as businesses further delay decisions on areas of investment such as machinery, technology and recruitment – resulting in an economic lag for the UK.
Off the back of an unpopular Autumn Budget and with increased employer National Insurance contributions and business rates set to rise, today’s statement was a missed opportunity to support the UK’s SMEs.
Jonathan Frost , Director, Global Advisory, BioCatch
There were hopes that the Chancellor would build on the FCA’s commitment to tackle financial crime as a key priority in its newly unveiled five-year strategy, but disappointingly, it was left out of the Spring Statement.
The UK has become the fraud capital of the world and urgent government action is crucial to reverse this alarming trend. This bold action is likely to come from the Home Office, with Fraud Minister David Hanson announcing today at the Global Anti-Scams Alliance summit that a new fraud strategy will be published later this year – this can’t come soon enough. Proposals will cover data sharing, international cooperation, public awareness, victim support and evolving threats including AI. He also revealed plans for a Global Fraud Summit in early 2026, hosted in the UK by the U.N. Office on Drugs and Crime and Interpol.
It’s vital that the UK’s fraud strategy takes a holistic approach that focuses on prevention, not just reimbursement. Banks can’t be the sole line of defence; stronger collaboration across industries and law enforcement is essential to disrupt fraud at its source. Policing must also evolve to tackle digital fraud effectively and co-operate internationally to ensure that offenders are not beyond reach.
A coordinated strategy leveraging cross-industry intelligence and advanced technology is crucial to stop scams before money is lost and protect individuals from the devastating emotional trauma of fraud.
Gabby Donald, VAT Partner, Blick Rothenberg
Given the investment planned for HMRC and the need for additional, well trained, staff there surely there is a need to protect HMRC from the planned redundancies otherwise this bodes poorly for the Government’s plans to collect more tax by clamping down on evasion.
To make the UK a destination for businesses to set up and grow there needs to ne an ambitious review of the tax code to address areas where tax laws and practice undermine other government policies. Proper reform and simplification of the tax code has been put in the ‘too difficult’ pile for too long.”
To get ‘people building again’ we need skilled people and businesses with the money and confidence to employ them.
Fiona Fernie, Partner, Blick Rothenberg
If the 15% cut in admin spend for Government departments includes HMRC then their service is only likely to get worse than it already is when the Government needs to collect funds. Their attempts at AI have already shown that it is pretty ineffective in HMRC.
Simon Gleeson, Partner, Blick Rothenberg
The return on capital investments takes time to impact growth: Investment in public infrastructure takes many years to provide a return. Talk of growth today seemed funded by hope and rhetoric rather than substance and game-changing investment. Global uncertainty isn’t a new challenge and sticking to fiscal rules fuels austerity. The OBR revised forecast from 2% to 1% is a disappointing headline number.
Roger Holman, Private Client Partner, Blick Rothenberg
Talking to a Kings Counsel (KC) last night, there is little or no point in going for criminal conviction for tax fraud – the burden of proof is simply too high. HMRC should just go for civil cases to allow them to collect tax where they actually find fraud; if only they could actually find the fraud in the first place.
Heather Powell, Partner and Head of Property & Construction, Blick Rothenberg
£2bn of capital expenditure a year to drive growth and productivity – but the Chancellor has missed a major opportunity to increase investment by the private sector by not increasing the maximum interest a corporate group can claim as a tax deduction every year. The current £2m threshold was imposed when the BOE base rate was 0.25% – rates are currently 4.5% – businesses who are investing in expanding their businesses and UK Infrastructure should be allowed to deduct the cost of debt funding investment of at least £10m a year.
Robert Salter, Director, Blick Rothenberg
Ms Reeves’s ambitions for tackling tax fraud are the type of policy which every chancellor in the last 30 years has announced. However, the reality is that it is very difficult to tackle tax fraud in a valid, coherent manner and obtain any meaningful improvement in this area without significant investment in HMRC staff and – in effect – proper pay for HMRC officials. Sadly, HMRC have previously advised that 1/3rd of their staff are on the National Minimum Wage and it should therefore be no surprise that the performance of HMRC continues to disappoint.
Ms Reeves’s focus on ‘tearing down blockers’ in planning and economic development appears to be ill-thought out. After all, the Government’s planned introduction in ‘day one’ employment rights for all employees – which is due to come into effect shortly – is exactly the type of administrative burden on employers which actually risks increasing their burden and make the UK a less attractive location for growth.
Nimesh Shah, CEO, Blick Rothenberg
The government’s plans to invest £300m over the next 5 years into HMRC will not scratch the surface to tackle the tax gap, and claims of a three-fold return on investment in additional tax revenue seem incredibly ambitious when HMRC has received such a slating by the government and the Public Accounts Committee.
With the UK facing the highest tax burden in 50 years, there remains a major doubt at HMRC’s ability to actually to properly focus its time and efforts to collect the right amount of tax. It is fine for the government to increases taxes as they see appropriate, but I fear that HMRC’s lack of accountability and drive to ultimately collect tax means the absolute tax gap increases further.
The government needs a proper strategy on tax and the future direction of HMRC – piecemeal investment and associated claims of generating vast sums of additional tax revenue does not offer any confidence for the taxpayer that the tax gap issue will be properly addressed in the long-term. The major issue remains the complexity of the UK’s tax system – the longest tax code in the world. And I am sympathetic towards HMRC that it simply cannot keep up with the swathes of new legislation.
A tax reforming future Chancellor would take a step back and develop a long-term and sustainable strategy – history suggests that throwing money at HMRC will not address the problem.
Dan Boardman-Weston, Chief Executive, BRI Wealth Management
The Spring Statement was largely as expected, with growth expectations being cut, defence spending being increased, and the evaporated fiscal headroom being restored by cuts to benefits and central government. Markets have shrugged off the announcements as they have bigger things to concern themselves with at the moment. The UK remains in a precarious position and deep structural reform is required to set the country back on the right track. Whilst a number of the headwinds that the country has seen in the past few months are not the fault of the government, a number are, and little that we’ve seen or heard will deliver the change that this country requires.
Ryta Zasiekina, Founder, CONCRYT
While the Government’s engagement with fintech leaders last week is encouraging, the Spring Budget statement falls short of delivering the bold, decisive action needed to truly supercharge the UK fintech sector. The UK faces increasing competition from global fintech hubs, and without more targeted incentives, improved access to funding, and a more agile regulatory framework, we risk losing our competitive edge. We need more than dialogue and good intentions, we need concrete, ambitious policies that empower fintech firms to scale and innovate at pace.
Scott Dawson, CEO, DECTA
While the Chancellor’s statement focused on defence, housing and long-term growth, it appears to have overlooked the immediate pressures faced by the UK’s 5.5 million SMEs. It’s disappointing not to see Labour focus more on SMEs, particularly with the rhetoric that they are the backbones of our economy and amid the certainty that we are in for more difficult times.
The lack of any specific measures to alleviate the rising costs, such as business rates, VAT, or the increase in National Insurance Contributions, is a missed opportunity. As we know from working closely with SMEs, they are already under significant strain, with limited access to funding. Our upcoming research on the matter echoes this concern, with a majority of consumers believing the UK is not a favourable environment for SMEs and expressing worries about inflation and fraud.
John Phillips, General Manager EMEA, FloQast
A commitment to simplifying regulation is a positive step towards fostering growth – but simplification must not come at the expense of accountability.
Rolling back outdated guidance and easing regulatory burdens can empower companies to innovate and expand. However, it’s important that streamlining does not lead to lapses in compliance or increased exposure to financial risk.
Maintaining robust internal controls, transparent reporting, and a proactive compliance strategy will be critical to sustaining trust and long-term stability.
Companies that embrace regulatory change while doubling down on strong governance and financial integrity will be best positioned to seize new opportunities, mitigate risk, and drive responsible growth.
George Lagarias, Chief Economist, Forvis Mazars
Markets don’t hate big budgets nearly as much as they hate big surprises. The bond market is largely unchanged before and after the budget, suggesting that the Chancellor has managed to play all the right notes by carefully setting expectations and then sticking fairly close to them. The UK needed to spend big on Defence and Healthcare, without completely gutting other services. Chancellor Reeves intoned as many times that she would stick to her fiscal rules, as the markets needed to hear. Given the deteriorating global economic outlook, the OBR had little choice other than to bring growth expectations down, closer to market consensus of nearly 1%. This is a realistic assessment of things and sends a very clear signal to the markets that the UK government is playing by the rules.
Susannah Streeter, head of money and markets, Hargreaves Lansdown
The Chancellor’s statement was a game of two halves, and it’s been reflected in sharp market movements. Rachel Reeves appeared to be on the losing side of investor sentiment with downgrades to growth this year but scoring goals of optimism with upgrades to GDP further ahead, and forecasts for real disposable income to rise in the months to come. The FTSE 100 and FTSE 250 lost ground and then made handbrake turns as hope rebounded about flickers of growth. 10-year gilt yields also jumped higher, as some bond investors baulked at extra investment revealed, but then dropped back sharply a little as prospects for growth rose, easing the squeeze on the public finances. Housebuilders climbed back up from disappointment, amid hopes that a growing economy and more money in the pockets of buyers, amid a commitment to ramp up building, will lead to more completions ahead.
There were no big surprises in this statement, and that’s exactly what the Chancellor intended. Stability is right at the cornerstone of the government’s agenda, and she appears to have done the trick of not unnerving investors further. She has made it clear she’s not for turning and won’t break her fiscal rules. It’s still not going to be easy going forward despite the wiggle room in the years to come the Office for Budget Responsibility has forecast. The UK is not blessed with lower debt to GDP levels like Germany, which has enabled the country into lifting its borrowing brake. With eyes trained on investment to propel longer-term growth, the government will still have limited room for manoeuvre to deal with incoming trade disruption. The hope is that UK will still be seen as a steady, if sluggish, ship in the storm brewing amid the threat of further tariffs from the US.
Rachel Winter, Partner, Killik & Co
Markets reacted negatively when Rachel Reeves stated that the OBR had reduced its growth forecast for 2025 to 1%. Although the FTSE 100 and the FTSE 250 remain in positive territory today, they both lost ground from the start of the Spring Statement speech. The pound has remained reasonably stable, but it may be impacted by future inflation movements. If inflation does indeed average 3.2% for 2025 as predicted, it will be difficult for the Bank of England to continue cutting interest rates. This could strengthen the pound, although it would likely put the brakes on economic growth.
The OBR’s prediction about the increase in national income that will result from Labour’s planning reforms was a pleasant surprise. That said, shares in some UK-listed housebuilders are in negative territory today, suggesting there is a degree of scepticism regarding these plans.
Alex O’Malley, Managing Director, Love Finance
The Chancellor’s Spring Statement outlines some ambitious plans to fuel the UK’s long-term growth, including reforms to planning and an uptick in defence spending. While the OBR’s forecast shows that these reforms could impact GDP by 2029, the reality for SMEs today is that they’re still grappling with immediate challenges. The proposed reforms around housing and public sector efficiency are a step in the right direction, but we need to address the pressing issue of small businesses’ access to finance and their struggle with ongoing inflationary pressures. It’s essential that we ensure the resilience of SMEs, which are a key driver of economic recovery.
Rachel Springall, Finance Expert, Moneyfactscompare.co.uk
It is undeniable that consumers from all walks of life will be anxious on how tax or welfare changes will impact them financially. The months ahead could be challenging for consumers, so it is essential to take time out to budget, but also to seek independent advice if there are any anxieties about meeting any financial commitments.
Cash ISA reform
The Chancellor ruled out any immediate plans to reform cash ISAs over recent weeks, but it’s vital savers utilise their allowances every tax-year, or lose it. There was an abundance of debates to review cash ISAs in attempts to encourage consumers to invest in UK stocks, but fundamentally there will be savers out there who do not want to be forced to place their hard-earned cash in a pot which could be at risk. A stocks & shares ISA is suitable for those who intend to invest over the longer-term, as fund performance can fluctuate over shorter-term timescales.
However, over the longer-term, stocks and shares ISA can outpace cash returns and beat inflation, but there is never a guarantee that funds will perform well. Those now considering a stocks & shares ISA would be wise to keep in mind that past performance is never guaranteed to be reflected in future returns. Indeed, the significant rise in stock markets over the past year may not be sustained and could fall back. Opening an ISA and making an initial investment is just the start, it’s important to regularly review whether it’s working hard enough and still suits someone’s needs. Apathy is dangerous when it comes to savings cash, especially at a time when interest rates are falling, and inflation sits above its 2% target.
Personal allowances for savers
Unsurprisingly there were no adjustments announced for personal allowances today, the income tax freeze until 2028 stands. Unfortunately, there will be hard-pressed savers who may now end up in a higher rate tax-bracket, subsequently halving their Personal Savings Allowance (PSA). According to the Office for Budget Responsibility (OBR), it is estimated that 2.5 million people are expected to pay higher-rate tax at 40% (2025-26). The incentive to review and switch accounts is vital for savers and it is worth noting that £300bn is sitting in UK current or savings accounts earning no interest whatsoever, according to the Bank of England. It is essential savers take action to consider all the various accounts available to them, maximise the interest they earn and utilise any tax-free allowances before the end of the 2024/25 tax-year.
Affordable Homes Programme
The Chancellor confirmed last week that more investment was going into housing supply, with a top-up of £2bn into the Affordable Homes Programme, which is the third top-up in five months. This comes following a £500m top-up in October 2024, and a further £350m last month. Driving the supply of affordable housing has been a significant task but it must be addressed to support those who desperately need a place to call home. It is also worth reminding borrowers about the Government’s clampdown on Right to Buy (RTB) which has been under review to ensure enough stock of social housing is built to replace sold properties in an attempt to re-build a housing system in crisis.
Stamp duty
Time is ticking down for borrowers to finalise their property purchase to take advantage of the Stamp Duty Land Tax (SDLT) discount. The nil-rate tax threshold up to £250,000 will drop to £125,000 and the First-Time Buyer’s Relief nil-rate tax threshold of up to £425,000 will drop back down to £300,000. These reliefs were going to end, but there have been repeated calls for a further extension to boost the housing market. This means buyers who miss the deadline will need to ensure they have some decent savings to pay the SDLT, so mortgages which help borrowers save on the upfront cost of their deal or even offer a generous cashback payment could be more attractive.
Lifetime ISA ‘overlooked’
Despite calls to review the workings of Lifetime ISAs, savers are still in the dark on whether they will see any radical changes. This has unfortunately left some savers in a tricky position. Due to rising house prices the Lifetime ISA may now not be fit for purpose. The £4,000 LISA allowance remains frozen like many other allowances, but most notably the upper limit on the property value threshold remains at £450,000. Not only this but the withdrawal penalty has been highlighted as a deterrent and should be reviewed. To give this weight, HMRC revealed that penalty charges reached £75.2m in the 2023/24 tax-year. Circumstances can change so there should be some exceptions made to these penalties. Those considering a Lifetime ISA need to check the full terms and conditions before they enter any arrangement to ensure they are eligible for the 25% government bonus. This product might not be suitable for everyone, so it’s wise to compare different savings accounts where they can move their money freely.
Landlords ‘ignored’
There has been much debate over the future of the buy-to-let market, with landlords in dismay over whether they can continue with their investment in property, and feeling ignored. The stamp duty surcharge on additional homes was increased to 5% and recent studies suggest there has been an exodus of landlords who have quit the private rental sector due to dwindling margins. In some more positive news, buy-to-let rates have been on the downward trend and the choice of deals rose to a record high. Borrowers would be wise to navigate the latest deals if they are coming to the end of their fixed deal and seek advice if they need support.
National insurance hike for employers looms
The hike to National Insurance contributions by employers will rise to 15% from April 2025 and there have been numerous calls for a retraction, but it is still going ahead. What is worse for employers is that the threshold at which businesses start paying National Insurance on a worker’s earnings is going to drop from £9,100 to £5,000. As these changes impact businesses, it could have negative effects on their employees, such as pausing pay rises or re-thinking auto-enrolment policies. These have a dragging effect on an employee’s wealth over the longer-term. On the other hand, these measures could make salary sacrifice schemes much more attractive. According to the Confederation of British Industry (CBI), it is expected the rate hike from 13.8% to 15% will cost British businesses £25bn in the next year alone. Not only this, but a survey carried out by the Bank of England suggested 54% of firms are expected to raise prices and the same proportion said they would lower employment.
Alex Till, Chairman of National Enterprise Network
The Chancellor has effectively abandoned start-ups and small businesses in this Spring Statement. Enterprise Agencies across the country have become vital hubs for new businesses seeking support, advice and funding assistance. However, over the past year, funding for these agencies has virtually disappeared or has been reduced, with no indication from the Chancellor about future support. As a result, Enterprise Agencies are being forced to reduce operations, severely impacting the support available for new businesses. Combined with the upcoming increase in employee National Insurance, living and minimum wage and the new employment rights bill, this all represents a significant blow to the small business community.
Sam Hields, Partner, OpenOcean
The Chancellor’s Spring Budget sends a more balanced signal on innovation-led growth. While backing the Oxford-Cambridge Arc as ‘Europe’s Silicon Valley’ may win headlines, the chancellor’s commitment to strategic partnerships with regions like Greater Manchester, West Yorkshire, and Glasgow through the National Wealth Fund is just as critical.
To build a globally competitive industry the government must back regional tech hubs across the country. AI and enterprise software startups are scaling up outside London and the South East, with Belfast and Manchester leading the way. Access to high-quality capital at market-standard terms will be vital to allow startups to grow where they are, rather than be sucked into London or across the Atlantic. Success stories like York-founded planning software company Anaplan, recently acquired for over $10.7 billion, show that world-class tech can be built outside traditional hubs.
For founders and investors alike, confidence in the UK market hinges on more than flagship projects. It is crucial for the government to send a clear signal that the UK remains one of the best places to build, scale, and exit. That’s how we attract global talent, reverse the trend of startups listing abroad, and strengthen the entire venture ecosystem.
Caroline Wayman, global head of financial services, PA Consulting
It’s right for the Chancellor to take stock of regulatory roadblocks. To make sure this creates sustainable growth, we need to tackle the actual problems – not perceived ones. This means engaging with industry and customers to find where the real regulatory barriers lie, making sure that change is real and meaningful, and learning the right lessons from the past.
A bubble of unsustainable growth will collapse under its own weight. Customer centricity is at the heart of good business and sustainable growth. Long-term growth in financial services hinges on customers feeling confident to participate in financial markets. To buy things, people need to believe they’ll be protected, so regulatory changes need to be very focused on outcomes, alongside opportunities to innovate.
The Chancellor has recognised the need for decisive action. Good leadership involves stepping up and taking action in uncertain times – simply waiting for stability isn’t an option. That is something we must all recognise across sectors.
John Dentry, Product Owner, Pay.UK
With the country’s balance sheet in the spotlight, it is only natural that consumers look to their own finances. During a period of economic uncertainty, especially one as prolonged as in recent years, it can be easy to let worrying about your finances get ahead of you. We find that it is always useful to focus on the things you can control, and we recommend that you start by looking at your bank account.
Whether it’s a local branch, the latest financial management technology, cash incentives or high savings rates, everyone has unique circumstances where different features or perks have a greater impact. This means there’s no hard and fast rule for which bank you should use. We encourage consumers to take the time to think about their financial needs – which could well have changed in light of this Spring Statement – and take action to ensure their banking partner is the right fit. Remember, your switch is free and guaranteed through the Current Account Switch Service, so your money is always safe when switching.
Greg Cox, CEO, Quint Group
The Chancellor’s statement today clearly evidences the challenging economic conditions that persist in the UK – and that there is a way to go to inspire confidence among businesses and consumers in its promises of long-term growth.
It has become harder for small to mid-size businesses to operate over the past six months, with prices rising and the threat of reform to workplace rights causing anxiety and distrust. Too many smaller firms are feeling the burden of a sluggish and marginalised economy, and the impact of next month’s next month’s rise in employers’ national insurance contributions haven’t disappeared.
While the government’s efforts to slim the state are laudable, it can and should be more proactive in driving growth through all its champion industries. Investing more in defence is timely and imperative, but it’s also important that sectors like fintech don’t get left behind. The UK remains one of the world’s top fintech hubs, with more than half of our unicorns being fintechs. Our sector has a critical role to play in breathing life back into the economy – but to do that, we need to create the right conditions for businesses to thrive.
Removing barriers to innovation will be crucial in making this a reality. Whilst any action to relax regulations must be taken seriously and with consumer interests at the centre, recent steps taken by the Government to reduce complexity and reporting requirements in financial services are a step in the right direction. I look forward to seeing what more this government does to allow smaller entrepreneurial businesses to flourish and grow into the unicorns they have the potential to become.
Andy Butcher, Branch Principal & Chartered Financial Planner, Raymond James
Providing incentives for all Brits to save and invest
There are currently too few Brits investing, and even more may be put off it if they must complete a tax return for only modest gains. Investing is a great way to boost returns in the long term and prepare for retirement, while reducing the burden on the state in older age. With this in mind, the Chancellor not making any changes to capital gains tax, dividend and ISA allowances is a positive move. Reducing allowances would potentially discourage people from saving and investing, a harmful outcome to Brits who have already suffered under a high inflationary environment over the past few years.
Supporting the health of UK PLC amid volatility
Despite inheritance tax (IHT) being paid by relatively few estates, the changes brought forth in the Chancellor’s Autumn Budget sparked significant backlash. Updates to business relief and agricultural relief have caused mixed reactions, with some business owners unsure whether to reinvest profits when they know an IHT liability is down the road, suggesting potential negative repercussions for UK businesses and the competitiveness of the UK market in the longer term. Any further changes to gifts and the seven-year rule would have also added complexity to the current situation, further incentivising business owners to sell up, defeating the purpose of a pro-growth policy. As such, the Chancellor’s decision to refrain from making further tax changes in today’s Spring Statement is a positive outcome.
Silvija Krupena, Director of the Financial Intelligence Unit, RedCompass Labs
I’m disappointed that the UK’s fraud epidemic wasn’t a focus in the Chancellor’s statement. Fraud now accounts for nearly 40% of all crime, yet the response remains fragmented and reactive.
This week, the FCA outlined steps to disrupt financial crime, from regulatory enforcement to working with firms developing technology that strengthens fraud prevention. While it looks good on paper, we’ll have to see how it is executed. We also need clarity on the government’s role in all of this, without their intervention efforts will only go so far.
The majority of fraud originates online, yet tech firms still face no meaningful penalties for the scams proliferating on their platforms. Meanwhile, criminals are leveraging AI to automate and scale fraud, while the government and regulators remain steps behind.
Without investment in AI-driven detection, stronger legislation, and coordinated action across financial institutions, regulators, and law enforcement, the UK will continue to lose ground in the fight against fraud. The government must step up now, if it doesn’t the gap between criminals and those fighting fraud will widen.
Brandon Till, Head of Business Solutions, Soldo
In the wake of the Spring Statement, UK businesses are under pressure to cut costs. But reactive measures – like the government’s cutting of all procurement cards, companies implementing blanket hiring freezes, or making mass redundancies – offer short-term relief at the cost of disrupting essential operations and delaying growth opportunities.
Instead, businesses need a more proactive approach. Just as the public sector needs to mitigate wasteful spending with better controls – not just fewer cards – companies need to ensure they have effective oversight of spending before making cuts that set back productivity. Implementing spend management and AI solutions can help uncover hidden costs, increase efficiency and redirect resources to where they create the most value. Ultimately, cost-cutting shouldn’t come at the expense of efficiency. Whether in the public or private sector, financial control isn’t about restriction – it’s about transparency and making proactive decisions.
Ravi Anand, Managing Director, ThinCats
While it would be foolish to ignore the tax increases announced in the Autumn Budget and the overall uncertainty it has created for business, today’s Statement was more reassuring and continues to reiterate more recent comments by Government and its commitment to growth and reform.
If the economy is going to grow then it will be led by private investment and enterprise. Therefore, the recent consultation to improve access to finance for businesses are really important and alongside maintaining the right incentives for entrepreneurs and venture capital firms. A lot has been achieved in recent years around full expensing on capital allowances, but we would encourage further tax breaks on capital expenditure. The role of the British Business Bank remains vital in supporting growth in certain sectors too.
We now need more detail on the industrial strategy and the next steps. It’s important we don’t get bogged down in consultations, let’s get on with things now.
Darren Upson, VP of Europe, Tipalti
The Spring Statement has reaffirmed what many businesses feared – limited fiscal flexibility and a tough economic outlook. With government borrowing hitting £10.7bn last month, Reeves is rapidly running out of a runway to support businesses.
To thrive and maintain the UK’s status as a global fintech leader, businesses must focus on what they can control. Informed decision-making, powered by real-time financial data, is more crucial than ever. With tighter budgets, agility and foresight will be key to spotting opportunities and remaining competitive. Implementing the right finance technology can be the difference between long-term resilience and falling victim to the consequences of economic headwinds.
Marc Acheson, Global Wealth Specialist, Utmost Wealth Solutions
Rachel Reeves stated that she has restored full headroom against the ‘stability rule’ through spending cuts rather than raising taxes and that the government will be running a surplus of £9.9bn by 2029-30. However, with the OBR slashing growth forecasts in half for 2025, the risks are to the downside. Her headroom is wafer-thin and if economic conditions deteriorate and that headroom evaporates, it could pave the way for future tax rises later in the year if spending cuts prove insufficient to plug gaps.
There was nothing in this statement to stem the flow of non-doms, many of whom have been leaving to more favourable jurisdictions following the removal of IHT protections on existing settlements announced in the Autumn Budget. As a result, we can expect to see a continuation of non-doms and HNWs exiting the UK in the coming years, with significant ramifications for future tax receipts.
Stefano Vaccino, founder, CEO, Yapily
The government is saying all the right things about supporting the UK’s innovation economy and making the UK the best place in the world to grow a business. Today’s focus on fiscal discipline is a step towards recovery. A positive market reaction to the Spring Statement also shows a vote of confidence in the Chancellor’s remarks. But neither recovery or growth can succeed without bold commitments to innovation.
Britain’s fintechs are at the heart of this. After a couple of sticky years, one of the UK’s most valuable sectors is on the edge of a remarkable renaissance. We’re creating jobs, attracting capital, growing fast, and radically innovating financial services with products that help businesses and households get more from their money.
The government says it wants to be on the side of working people. That also means being on the side of the businesses and innovators that employ them. Only the tech sector can deliver the innovation, and in turn the growth the UK economy needs. fintechs are central to this recovery.
