The latest Spring Statement has left businesses in Hereford and Shropshire with more questions than answers, as Chancellor Rachel Reeves failed to introduce new measures to ease the mounting financial pressures on UK companies, says leading accountancy firm Thorne Widgery.
With rising costs, tax burdens, and increased regulatory demands, many businesses had hoped for targeted support to help them weather economic uncertainty.
Instead, the Statement focused on broader economic policies and spending increases in select sectors, leaving business owners to manage these challenges alone.
“The Government has missed an opportunity to provide meaningful relief for businesses,” says Daniel Crowther, CEO at Thorne Widgery.
“With inflationary pressures, high employment costs, and ongoing tax demands, companies are struggling to stay competitive, yet there is no clear plan to support them.”
One of the key takeaways from the Statement was the revised GDP growth forecasts, which suggest the economy will see gradual improvement from 2026 onwards.
However, business leaders remain concerned about the immediate financial strain many firms are facing.
While the Chancellor ruled out further tax hikes, she reaffirmed the Government’s commitment to tackling tax evasion.
A key part of this strategy includes greater investment in HMRC’s digital capabilities and a planned 20 per cent rise in the number of tax fraud prosecutions each year.
“While clamping down on fraud is important, legitimate businesses will also feel the heat as HMRC steps up its audits and compliance checks,” warns Daniel.
“For many, this will add further administrative headaches and the risk of costly penalties for simple errors.”
Another significant change, buried within the Spring Statement documents, is the expansion of Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA).
From April 2028, sole traders and landlords earning over £20,000 annually will be required to submit quarterly tax reports. Additionally, stricter late payment penalties will be introduced this April.
“This will place a heavier compliance burden on small businesses and self-employed individuals,” Daniel explains. “Many will need new accounting software or professional support, adding to their financial strain.”
In the run-up to the Spring Statement, speculation grew about potential changes to ISAs, including a rumoured £4,000 cap on cash ISA contributions.
While the Chancellor avoided addressing this directly, discussions continue around reforms aimed at steering more investment into equities.
“If the Government moves forward with these ISA changes, it could impact how individuals save and invest, with potential knock-on effects for businesses and consumer confidence,” says Daniel.
Although no drastic policy shifts were announced, Thorne Widgery urges businesses to stay proactive in managing their financial position.
“With so many regulatory and tax changes on the horizon, now is the time for businesses to review their strategies, ensure compliance, and seek expert guidance,” Daniel advises.
“Working closely with an accountant can help businesses navigate these uncertain times and plan effectively for the future.”