5 things we learned from the Spring Statement
Rachel Reeves was true to her word when she said the Spring Statement would not be a full-on Budget, but it wasn't all growth forecasts and spending cuts.
The Chancellor used her speech in the House of Commons to reaffirm the government's promise not to raise personal taxes, and also provided more details about planned benefits reforms.
A possible shake-up of the Isa system was also hinted at in the statement's small print, published after Reeves had finished her speech.
Here, we take a closer look at what was included in the Spring Statement, and how the announcements could affect your finances.
5 things we learned from the Spring Statement
Over the past couple of months, the government has insisted that the Spring Statement would be an update on the state of the nation’s finances, and that the only 'major fiscal event' this year will be the Autumn Budget.
So while the Chancellor's speech didn't include any major new personal finance reforms, there were a handful of important announcements. Here are five things we learned from today's event:
1. No personal tax rises
Despite sluggish economic growth and increased government borrowing, Reeves confirmed there will be no increases to income tax or National Insurance rates for employees.
However, she announced a fresh crackdown on tax evasion and avoidance, stating the government will invest in technology to help HM Revenue & Customs catch more offenders and 'increase the number of tax fraudsters charged each year by 20%'.
- Find out more: income tax rates
2. Benefit squeeze
Last week, the government announced plans to reform the benefits system. Today, the Chancellor confirmed there would be a rise in the standard allowance for Universal Credit from £92 per week in the 2025-26 financial year to £106 per week by 2029-30.
The Universal Credit health element (which reflects a limited capability to work) will be halved to £50 a week and then frozen for new claimants in 2026-27. Existing claimants will also see their entitlement frozen at £97 a week until 2029-30.
3. Growth forecast halved
The Office for Budget Responsibility (OBR), which is independent of the government and assesses the health of the UK's economy, has revised down the country's growth forecast for 2025 from 2% last autumn to 1% today.
This follows data from the Office for National Statistics showing the economy expanded by just 0.1% in the final quarter of 2024, after registering no growth in the previous quarter.
The Bank of England has also predicted a slowing of economic growth this year, downgrading its original forecast of 1.5% to 0.75%.
While Reeves admitted she is not satisfied with this gloomy outlook, she revealed that the OBR has upgraded its longer-term growth estimates from next year.
4. Inflation target for 2027
The latest CPI inflation figure was also announced today and showed that inflation dipped slightly from 3% to 2.8% in February 2025.
However, that's still above the Bank of England's target of 2%, and means prices are increasing by more than the government would like.
Although inflation is nowhere near as high as in October 2022, when the figure hit 11.1%, it's been up and down for months now.
Reeves says the government will work closely with the Bank of England and the independent Monetary Policy Committee to get inflation down to 2% by 2027, giving the economy 'the stable platform it needs to grow'.
5. Future Isa shake-up possible
Individual savings accounts (Isas) allow people to save up to £20,000 a year without paying tax on the interest they earn. There are several different types on the market, but the cash Isa is the most popular.
There has been speculation that the Chancellor wants to push savers towards stocks and shares Isas instead, believing this will help stimulate economic growth. Potential rumoured changes include reducing the annual tax free-allowance on cash Isas, possibly to just £4,000, or adjusting the personal savings allowance.
The government ruled out including potential Isa reforms in the Spring Statement, and Reeves didn't talk about any plans in her speech. However, Isas were mentioned in the documentation published after the announcement.
It stated that the government is 'looking at options for reforms' to Isas, with the aim of 'getting the balance right between cash and equities to earn better returns for savers, boost the culture of retail investment, and support the growth mission.'
- Find out more: what is an Isa?
