The Chancellor's Spring Statement 2025, an overview

The chancellors Spring Statement 2025 has been unveiled with Rachel Reeves announcing the following:

Overview

There is to be new investment in technology used by HMRC to help crack down on tax evasion, and the plans include a forecast of an increase of 20% in charges against those evading tax, which would raise revenue from reducing tax evasion to £7.5b
From summer this year, the HICBC (High Income Child Benefit Charge) will be able to be paid through PAYE by those parents who are employed, this will remove the requirement for them to register for self assessment.
The OBR, Independent Office for Budget Responsibility, slashes growth forecast for 2025 from 2% to 1%; and increases their forecast for end-2025 inflation from 2.6% to 3.2%; Reeves suggested inflation to fall to 2% by 2027
Plans for 1.3m homes to be built across the UK during the next 5 years after changes were made to the planning framework.
Defence spending to be increased to 2.5% of GDP as of April 2027, with an immediate £2.2b uplift for 25/26
The total saving from the welfare reforms come to £3.4b.
£3.25bn transformation fund to bring down the costs of running government
UK defence innovation fund of £400m in the Ministry of Defence
£2bn investment in social and affordable housing
£3.4bn net cut to the welfare budget
State pension triple lock - 4.1% increase in April 2025
Pension credit will also rise by 4.1%
Confirmed backing for a third runway at Heathrow
£600m to train up 60,000 new construction workers

Other tax changes that had previously been announced included:

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