Chancellor Rachel Reeves has delivered the Government’s Spring Statement this afternoon. Here are the key highlights most likely to impact our members.
Although it is not a formal Budget, the statement gives Chancellor Rachel Reeves the opportunity to provide an update on the economy and also respond to the publication of the revised forecasts of the Office for Budget Responsibility (OBR).
As expected, the statement contained no tax increases.
No mention was made of changes to National Insurance contributions, despite calls for the Chancellor to reverse the Autumn Budget's increase.
The NCC's Director General John Lally said: "It's a great shame the Government has not taken the opportunity to help businesses facing extra costs at a time of already significant pressure."
Economic growth was revised down from 2% to 1% for 2025, but is expected to rise.
The OBR predicted inflation to remain at 3.2% this year, dropping to 2.1% in 2026, and meeting the Treasury's 2% target in 2027. Separately, it was announced today by the Office for National Statistics that inflation has fallen to 2.8% from 3%.
No mention was made of a change to business rates. These are expected to stay at 40%.
The OBR has concluded that planning reforms will increase the level of real GDP by 0.2 per cent in 2029/30 creating an additional £6.8bn for the economy.
£2bn funding was announced for social and affordable housing next year, for delivery of up to 18,000 homes.
The NCC will continue to engage with Government to advocate for and drive growth in our industry.
To see the full Spring Statement announcement click here and for the Economic and Fiscal Outlook from the OBR, click here.
