UK Chancellor Rachel Reeves delivered Labour’s Spring statement earlier today, emphasising that it was a statement, not a budget, as the government remains committed to just one ‘fiscal event’ per year. Nevertheless, there were still important talking points, which we reflect on for clients.
While no major measures were expected, the statement highlights the ongoing challenge the government faces in addressing stagnant growth. It also underscores the UK’s sensitivity to global uncertainties, such as those triggered by the Trump administration, and the limitations of the government’s fiscal commitments. The Office for Budget Responsibility (OBR) has downgraded its growth forecast for this year from 2% to 1%, and while next year’s forecast is revised upwards, the UK urgently requires a more innovative approach to public spending and economic governance to drive the growth it needs.
Although we didn’t expect any clarity on proposed changes to inheritance tax (IHT) and pensions today, it’s been five months since the Autumn Budget, and we still lack certainty on these measures.
People are in limbo, and we challenge the government to provide a concrete blueprint to end this persistent uncertainty.
We urge clients to avoid knee-jerk reactions based on speculation. Our message remains the same: don’t believe everything you read. It’s crucial to discuss your financial ambitions and concerns with a Wealth Planner before making short-term decisions that could impact your long-term financial wellbeing.
If you have any questions on how these developments may affect you, please contact us.
