As expected, there wasn’t much new to note in this year’s Spring Budget Statement, and frankly, that is welcome. After a busy 18 months of big policy changes that made long-term planning feel like trying to hit a moving target, what we got today was largely “no news”, and sometimes no news is good news.
The clearest headline for individuals is the confirmation that the full new State Pension will rise by 4.8% from April, to £241.30 per week, which works out at about £12,547.60 a year. This is the uprating tied to average earnings under the triple lock and is already reflected in the official benefit and pension rates.
The Office for Budget Responsibility (OBR) now expects the UK economy to grow more slowly in 2026 than it did in the November forecast, with GDP rising by about 1.1% next year. Inflation is now expected to fall faster than previously thought, reaching roughly 2.3% during 2026 and touching the Bank of England’s 2% target later in the year. Unemployment has been revised up, with a peak now expected at around 5.3%. The OBR also reports a little more fiscal headroom for the government than before, giving an extra cushion against future shocks.
What does this mean for clients and long term financial planning?
A welcome respite for long term plans! For advisers and our clients alike, this Spring Statement felt more like an economic update than a policy-making session. That is a relief.
Over the last year and a half we have had several tax changes that directly shaped planning decisions; changes to how inheritance tax interacts with pensions, tweaks to the cash ISA allowance, and adjustments to capital gains tax thresholds, to name a few.
Those developments have pushed planning conversations into a very tax-focused space. An “as you were” statement today gives us breathing room to step back from reactive decision making and re-centre on long-term goals.
Keep the long view on markets and geopolitics
The forecasts the OBR published do not, and cannot, include every sudden geopolitical shock. The recent conflict in the Middle East has already added a lot of uncertainty to markets and to household thinking. Short-term market moves often feel alarming, especially when they come with worrying headlines, but markets have previously navigated wars, energy shocks, and geopolitical crises. As volatility narrows, markets often settle. For most investors, keeping a long-term perspective remains the single best defence against noise.
Check how upratings affect tax and benefits for you
Even simple announcements can have knock-on effects. A higher State Pension is obviously welcome, but because pensions are taxable income it will change take-home pay for some and could push marginal tax positions for people with other income.
Tactical reviews, not wholesale rewrites
This statement is not a green light to ignore planning, nor is it a call to make panicked changes. Think of it as an opportunity for tidy-ups: review tax, check beneficiaries and IHT planning, confirm whether the changes of the past 18 months still make your existing strategies fit for purpose. Where more significant action is needed, plan it deliberately rather than hastily.
We at Una Vita Financial Planning welcomed today’s steady update. Policy surprises can force hard and quick choices; a calm statement gives clients and their advisers the chance to re-evaluate in measured fashion.
If you would like us to run a short, focused review of how today’s changes affect your financial plan, pensions or tax position, get in touch and we will take a look together.