Chancellor Rachel Reeves is set to deliver the UK's Spring Statement on March 26th. Traditionally it’s been a brief update on the nation's finances, but this year's statement could be unusual in that it may have to include further measures to try and balance the books.

The OBR is expected to lower its growth forecast, which could eliminate the £9.9 billion buffer in the Chancellor’s budget, meaning less flexibility for government spending and potentially more pressure on businesses and taxpayers. The majority of the shortfall is likely to be clawed back through spending cuts. The government is considering overhauling the social security system due to rising welfare costs which could result in some savings.

• Potential changes to CASH ISAs

One of the most discussed topics is the potential alteration of the tax-free allowance for cash Individual Savings Accounts (ISAs). Reports suggest that the Chancellor is considering reducing the annual limit from £20,000 to £4,000, to push savers towards other types of investment that could boost the economy. The outcome of any changes could result in clients paying more tax on interest from their cash savings. There has been no suggestion of any cuts to the Stocks and Shares ISA allowance at this stage.

• Key points from the October budget

These potential changes come on top of the announcements made in the last budget. We are currently working with clients on addressing their financial plans in the light of changes to Business Property Relief that come into effect in April 2026. Proposed pension reforms do not come into effect until April 2027, when pension death benefits will be subject to inheritance tax. The government is still in consultation on how this will be implemented.

We can’t predict what will happen on March 26th but as always, we are only a phone call or e-mail away if you have any questions.