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A blueprint to build Britain’s future

From ambitious housing targets to increased defence spending and a renewed crackdown on tax avoidance, Chancellor Rachel Reeves described her recent Spring Statement as “a serious plan for growth… and a serious plan to renew the country.” Her strategy, though, comes against a turbulent geopolitical landscape made further unstable by recent US import tariffs. Here, independent financial adviser Fairstone, a leading wealth management firm in the UK and Ireland, assesses the key elements of the Government’s growth blueprint.

A focus on fairness

The Chancellor said raising the National Minimum Wage will provide pay increases to millions while a freeze on fuel duty will alleviate the cost-of-living burden on households. 

And Westminster’s fiscal chief said the moves have already had an effect, with the Bank of England reducing the bank rate three times since the beginning of the parliamentary term, and real wages growing at their fastest pace for more than three years.

However, the changes come against the backdrop of political tensions and generational security challenges across Europe and the wider world, providing significant economic uncertainty.

Thriving in a changing world

Despite the shifting global picture, though, the Chancellor set a bullish tone, revealing forecasts that suggest Britain’s economy will grow faster than expected from 2026 onwards – outpacing estimates made at last year’s Budget.

The pace of progress, she said, has been aided by action taken since the Budget, which has allowed the nation to meet its fiscal rules two years ahead of schedule. 

Citing the restored stability rule and a £15.1 billion buffer for the investment rule in its target year, the Chancellor hailed the Government’s capacity to balance fiscal discipline with growth-oriented policies.

A renewed national security pledge

One of the most striking commitments outlined in the Spring Statement was the Government’s fully-funded pledge to increase NATO-qualifying defence spending. 

By 2027, defence expenditure is projected to reach 2.5 per cent of gross domestic product. 

To make this happen, an extra £2.2 billion will be handed to the Ministry of Defence next year, which, the Chancellor said, emphasises the growing importance of global security partnerships and the UK’s crucial role therein.

Tackling the tax debt crisis

Having outlined ambitious plans to close the tax gap during the autumn Budget, the Chancellor used the Spring Statement to announce an even more robust package of measures aimed at raising more than £1 billion in additional gross tax revenue annually by 2029/2030.

This, she said, would begin to help reduce a £44 billion unpaid tax debt mountain, of which around £20 billion is more than a year old.

The action plan includes a pilot programme centred on the automation of debt collection processes and older debts, and a recruitment drive to add a further 500 compliance staff to a 5000 HMRC target unveiled last year.

The blueprint builds on previously announced measures focused on enhancing third-party data use for automation and bolstering HMRC’s powers against tax advisers who facilitate non-compliance.

The Chancellor also confirmed HMRC is investing in private sector expertise and artificial intelligence and analytics to better identify individuals and entities attempting to conceal wealth abroad, which she said could help recover as much as £500 million over the next five years.

The moves will be accompanied by an updated HMRC informant reward scheme and an HMRC, Companies House and Insolvency Service taskforce, which the Chancellor said will tackle the practice of ‘phoenixing’, where businesses dissolve to avoid tax and debt repayment. 

Measures will include upfront payment demands and personal liability for directors, which Westminster says will help protect £250 million in tax by 2026/2027.

Speak to Fairstone about its expert wills, trusts and estate planning services here.

Growth through investment and innovation

Over the next five years, the Government has committed £13 billion to capital infrastructure projects and launched a construction skills initiative to train up to 60,000 additional workers. 

To tackle the UK’s housing challenges, £2 billion will also be invested in social and affordable housing schemes.

Furthermore, the Government’s headline planning reforms are predicted to have a profound impact, with changes to the National Planning and Policy Framework tipped to deliver an extra 170,000 homes over the coming years. 

By 2029/2030, the moves are expected to increase real gross domestic product by 0.2 per cent, injecting £6.8 billion into the economy. 

Beyond housing

While the Government’s planning reforms are set to deliver more homes, the benefit is anticipated to extend well beyond bricks and mortar.

The projected economic boost is expected to decrease public borrowing by £3.4 billion by 2029/2030. 

The Government’s plan represents a holistic approach, balancing immediate action with visionary goals to secure Britain’s future as a thriving, inclusive and globally competitive economy.

By combining fiscal responsibility, strategic investments and relentless reform, the Chancellor said the UK is poised to emerge stronger and achieve much-needed stability for decades to come. 

For more information about Fairstone and how its services could help you plan for a better financial future, visit its website or call 0800 884 0840.

THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.

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