Simon Shaw, of Duncan & Toplis, writes about spring statement delivers ‘mixed fortunes’ for businesses

The recent Spring Statement by The Chancellor came at a time when many businesses and consumers are facing increased costs, writes Simon Shaw, of Duncan & Toplis.

Although the statement didn’t include any changes to tax, it certainly gave an indication of the direction of the economy and how businesses might have to adapt.

The Chancellor made many mentions of the growth outlook which, despite a slowdown in 2025, is expected to grow faster than originally forecast from 2026. Businesses will have to consider this in their investment plans and in light of the more recent tariffs imposed by the US which will impact each business differently.

One major focus of the Government has been to deliver the 1.5 million homes over five years. The Spring Statement included an estimate that annual house building will increase by 30% which will inevitably contribute to growth. The challenge will be ensuring that housebuilders have the skilled people to deliver this increased building and the confidence that demand for new homes will continue.

The Government has previously announced £600 million investment in construction sector training which will be vital to delivering the skills needed.

Another part of the house building puzzle is ensuring developers have access to suitable land and can navigate the planning process effectively. Previous announcements to overhaul the planning process, reintroduce mandatory housing targets and identify suitable ‘grey belt’ land are intended to make the process quicker and provide additional opportunities for builders.

‘Grey belt’ land will include land previously used for petrol stations and car parks, and any Green Belt land released for development should deliver 50% affordable homes.

The statement also promised increased funding for defence with an ambition to reach 3% of GDP in the next Parliament. Much of the spending will be on new technology which it is hoped will enable businesses to deliver the items and technology needed and provide high skilled jobs.

There were also announcements about what the Chancellor called closing the tax gap. These included additional efforts to collect the ever-increasing level of unpaid tax by recruiting more HM Revenue & Customs compliance staff and taking stronger action against those who don’t pay the right amount of tax.

The Government have also confirmed the introduction of Making Tax Digital (MTD) for Income Tax. Businesses who are registered for VAT will have been use to MTD for VAT for some time now. MTD for income tax will come in from April 2026 for all those who are self-employed and landlords with income of more than £50,000.

These limits will reduce to £30,000 from April 2027 and £20,000 from April 2028. Businesses and landlords impacted by these changes should look at the systems they currently use to record their transactions and if needed switch to a MTD compliant software.

The Chancellor returned to the subject of growth saying this was the central mission of the government to restore stability, increase investment and drive-up living standards. In addition to the growth in house building, which is central to these plans, there will also be opportunities through the use of AI, investment in the road network and infrastructure projects.

Businesses will want to understand and plan how they can use these opportunities while considering the increases in wages and national insurance costs, and the continued pressure on consumers spending.

Overall it remains a very mixed picture for businesses who will each have their own challenges and opportunities in the year ahead.