What the Spring Statement 2025 means for the self-employed, small businesses & tradespeople
The 2025 Spring Statement from Labour outlines an economic update for the country, six months after Labour’s first Autumn Budget in fourteen years.
On March 26th, 2025, Rachel Reeves, Chancellor of the Exchequer, provided an update on the UK’s public finances, alongside a forecast from the Office for Budget Responsibility (OBR). Showcasing even more ambitious plans to improve the economy, the Statement addresses housebuilding and plans of establishing the UK as a defence industrial superpower.
To help you understand the Statement as a self-employed professional, small business or tradesperson, we have put together a summary of what may affect you.
No tax increases
As guaranteed by Reeves in the 2024 Autumn Budget, there were no further tax increases announced in the Spring Statement. However, she did acknowledge the issue of tax evasion again, stating how it is not right that some are evading what they owe in tax, whilst working people are paying their taxes and struggling with the cost-of-living. To address this, the Chancellor announced that the government will continue their investment in cutting-edge technology to help HMRC crack down on tax avoidance, setting out plans to increase the number of tax fraudsters charged by 20% yearly.
Additionally, there was no reversal of the increase to employer National Insurance Contributions and living wage that was previously announced by Reeves in the Autumn Budget. Many small business owners had been hopeful there would be U-turn by the government given the financial pressures it is likely to create.
Demand for highly-skilled engineers
During the Spring Statement, Reeves emphasised the government’s plan to make the UK a defence industrial superpower. A step announced to establish this status included spending a minimum of 10% of the Ministry of Defence’s equipment budget on novel technologies, aiming to drive forward manufacturing production in places like Glasgow, Derby and Newport, in turn creating more jobs for skilled workers. Reeves noted how the growth in manufacturing foresees an increased demand for highly-skilled engineers and scientists. This could present new work opportunities for engineering contractors as companies in this sector look for short- and medium-term resourcing options.
Access to Ministry of Defence contracts
Addressing the UK’s defence procurement system, the Chancellor of the Exchequer shared Labour’s aims to make the system quicker, more agile and more streamlined. The Statement also revealed how small businesses across the UK will be given better access to Ministry of Defence contracts, allowing smaller firms to have better opportunities to grow their business.
Progression of housebuilding
Reeves revealed that the OBR concluded that Labour’s reforms are set to lead to housebuilding reaching a forty-year high. Labour announced that changes to the National Planning Policy Framework will help build over 1.3 million homes in the UK over the next five years, creating a higher demand within the construction sector for more skilled workers. Ahead of the Statement, the Chanceller announced that there would be £600 million worth of investment to train up to 60,000 more skilled construction workers to help support Labour’s original plan of building 1.5 million new homes. This investment includes building 10 new Technical Excellence colleges across every region of our country to ensure working people are provided with the necessary education and opportunities.
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The information contained within the article is accurate as of the date of publication. Due to the evolving nature of the subject matter, subsequent updates and changes may occur. Readers are advised to verify the current status and accuracy of the information before making any decisions based on it.