Creating a hard place next to a rock / Spring Statement 2025
26 March 2025For years, I have noted to clients and on the radio when speaking about a Budget or an official Statement from a Chancellor that they are 'stuck between a rock and a hard place'. There is no doubt that it is a difficult job, with some parliamentarians shining, and others less so.
This year is different because the Chancellor has to an extent created the 'hard place' that they find themselves in. Rachel Reeves MP's economic policies and non-negotiable fiscal constraints have left her with minimal room to manoeuvre and most forecasts note that the headroom of £9.9bn she left herself with following the Budget announcements at the end of October 2024 has disappeared. Economic pain at the beginning of a new administration is not uncommon with the aim of turning the national 'ship' in the required direction and time will see if the overall national economic plan works.
With only one Budget each year, the Spring Statement should be a rather benign announcement, signposting where we are, which way UK PLC is heading, and at what speed. With government spending cuts announced (and mainly discussed before being detailed at the despatch box), there were few other changes and no tax changes, with many taxes affecting businesses already rising this month. A relief for many, but perhaps just some respite until we get to the main economic event, namely the Budget, anticipated towards the end of October 2025.
Economic results for the UK will be delivered over the next six months and each will provide an indication of the economic path we are treading, both as households and businesses.
No individual advice is provided during the course of this blog.
Keith Churchouse
Director
CFP Chartered FCSI
Chartered Financial Planner
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