A look ahead to the 2025 Spring Forecast

8th March 2025

Are we on our way to more tax rises on 26 March when Rachel Reeves makes statement in her so called Spring Forecast - a budget by another name maybe.

The Institute for Fiscal Studies sets out the possibilities one of which is being mentioned across the media. That is an extension to the freeze on allowances for a further two years. The affect on tax and national insurance is that £5billion pounds wold be collected if inflation remains at current levels.

If she does indeed do this then the so called fiscal drag will be really significant for all tax payers. More and more people ma think the chancellor conned us when she said before the election no increases planned for some taxes like income tax, national insurance for employees and VAT. Whilst no increase in tax rates the freeze on allowance from the Tory government is no biting increasingly and may be extended added to the NICs on employers that is already hitting recruitment.

So if you have time read the fairly lengthy article from the IFS HERE The article covers much more than tax.