As the UK’s economic landscape continues to evolve, Chancellor Rachel Reeves faces mounting pressure to reconsider some of the key measures announced in her Autumn Budget 2024. With the Spring Statement scheduled for 26 March, businesses and industry leaders are watching for potential adjustments to the controversial tax hikes and spending cuts.

The Autumn Budget 2024 – A recap

The Autumn Budget 2024, delivered on 30 October 2024, introduced significant changes that the Chancellor claimed were aimed at stabilising public finances and promoting economic growth. Key measures included:

1. An increase in employers’ National Insurance Contributions (NICs) from 13.8% to 15%, effective 6 April 2025.

2. A reduction in the Secondary Threshold for NICs from £9,100 to £5,000 per year, also from 6 April 2025.

3. Changes to Agricultural Property Relief (APR), which have sparked protests among farmers.

These measures were part of a broader £40 billion tax raise package designed to ‘restore financial stability’ and rebuild Britain.

Economic Challenges and Business Concerns

Recent economic indicators have raised concerns about the impact of these measures:

1. Stalled Growth: The Office for National Statistics (ONS) reported zero economic growth in Q3 2025, indicating a fragile economy.

2. Rising Borrowing Costs: Government borrowing in December 2024 reached £17.8 billion, the highest level in four years and significantly above the Office for Budget Responsibility’s (OBR) forecast.

3. Business Confidence: A survey by the British Chambers of Commerce (BCC) revealed that nearly two-thirds of businesses are concerned about the tax and NIC increases.

Potential for Policy Adjustments

Given these challenges, there is speculation that Chancellor Reeves might use the Spring Statement to adjust some of the Autumn Budget measures. Possible areas for reconsideration include:

1. Employers’ NICs: The planned increase has been particularly criticised for its potential impact on job creation and business growth. There have been multiple examples recently of large well-known employers reducing head-counts and putting responsibility squarely at the Chancellor’s door.

2. Agricultural Property Relief: Ongoing protests from farmers may prompt a review of the changes to APR.

3. Growth-Focused Initiatives: The government may introduce new measures to stimulate economic growth and boost business confidence, which had taken a distinctly negative turn since Labour won the Election and the majority of commentary from Westminster was around the poor position of the economy they inherited. There was a definite change of tone after her appearance at Davos recently when the Chancellor spoke in a far more positive tone than she had since taking office.

Looking ahead…

The Spring Statement 2025 will be a crucial moment for UK businesses. While the Chancellor has committed to delivering only one major fiscal event per year, the current economic climate may necessitate adjustments to the Autumn Budget measures.

As ever, we’ll be listening in to the Chancellor’s speech and will compile her announcements into our Summary. That will be uploaded here and sent to clients as quickly as is possible. 

Finally, a reminder.

There’s bound to be an increasing volume of speculation in the media as we draw closer to the 26March, but please don’t make any big decisions before checking in with us first. We sadly won’t have an inside line to the Chancellor’s announcements, but can cast an objective eye over any plans or concerns you may have.