The alternative Spring Statement – What businesses really want

With Chancellor Rachel Reeves set to deliver her first Spring Statement on 26 March, businesses across the UK are bracing themselves for more announcements amidst an already challenging economic backdrop.

High taxes, stubborn inflation, sluggish growth forecasts, and ever-tightening margins are making life tougher for business owners.

While the Government’s focus may be on balancing books and fiscal headroom, we have been thinking, what if the Spring Statement focused more on what businesses actually want to see?

We are under no illusions, this is not fantasy economics, after all.

However, here is a practical, business-friendly wish list that could genuinely unlock growth, ease the pressure, and help businesses keep doing what they do best.

Rethink the Employer NICs increase

The October Budget confirmed an increase in employer National Insurance Contributions (NICs) from April, alongside a lower threshold for contributions.

For businesses already facing rising wage bills and higher input costs, this move feels like a direct hit to their ability to retain and recruit staff.

Pausing or scrapping this planned hike could free up vital funds for investment, innovation, and job creation, and send a much-needed signal of support.

Roll back the Capital Gains Tax (CGT) rises

Business owners planning to sell, retire, or pass down their businesses were dealt a blow with the hike in CGT rates last autumn.

Jumping from 10 per cent to 18 per cent at the lower rate, and 20 per cent to 24 per cent at the higher rate, the sudden change has left many scrambling to re-evaluate their exit strategies.

A more tapered approach, or at the very least, reliefs specifically aimed at entrepreneurs, would encourage long-term investment without penalising success.

Provide clarity and flexibility on Inheritance Tax reliefs

The upcoming changes to Agricultural Property Relief (APR) and Business Property Relief (BPR), capping reliefs at £1 million and introducing a new 20 per cent rate above that, are a big concern for family businesses and farms.

We have all seen the uproar that these changes have caused, with those in the agriculture sector amassing in the capital to protest.

While backtracking does not seem likely, clear, practical guidance on how transitional rules will work, should be provided, along with a reconsideration of whether the £1 million cap is too blunt an instrument.

Businesses need certainty to plan succession, not more complexity.

Tackle business rates reform head-on

Business rates have long been a thorn in the side of high-street businesses and manufacturers alike.

The call from business groups is consistent: simplify the system, make it more reflective of economic realities, and reduce the punitive impact on property-heavy businesses.

A comprehensive, fair reform here would be a welcome move in boosting confidence.

Offer real incentives to invest and grow

The current economic climate is not exactly screaming optimism, with low growth forecasts, high borrowing costs, and continued trade tensions.

Targeted incentives such as enhanced capital allowances, expanded R&D tax relief, or direct grants, could encourage businesses to invest in people, tech, and productivity, instead of retrenching.

Support the manufacturing sector

The recent slump in manufacturing output is worrying, especially when the sector has historically driven growth and employment.

Focused support, including innovation grants or energy cost relief, could provide the shot in the arm manufacturers need to weather current headwinds and stay competitive.

Rebuild confidence through stability

Ultimately, businesses crave certainty. While no one expects sweeping tax cuts, avoiding constant policy shifts and last-minute changes would do wonders for business confidence.

A Spring Statement that commits to stability over surprises would be as welcome as any headline announcement.

Our view

Whether or not the Chancellor’s Spring Statement delivers on any of these points, one thing is certain – we will be here to help businesses manage whatever comes next.

Our team is ready to guide you through the fine print and keep you focused on growth.

If you'd like to talk through what the Spring Statement might mean for you and your business, contact us today.

Dominic Bourquin