Technically this wasn’t a Budget — it was the Spring Statement. Think of it as the Chancellor popping up to give a financial status update, drop a few headline-grabbers, and try not to scare the markets.
Rather than direct support for SMEs, the focus was on long-term public spending strategy, welfare reforms, and defence investment. Here’s a quick breakdown of what was announced, and what it actually means for small business owners.
No new taxes — but a crackdown is coming
There won’t be any fresh tax increases, but the government is cracking down on tax evasion, aiming to recover £1bn through tougher enforcement.
Welfare reforms
£4.8bn in cuts are planned, alongside a £1bn investment in employment support. Universal Credit will also rise by £14 a week by 2029-30.
Defence gets a boost
An additional £2.2bn is being invested in defence, with an emphasis on AI, drone technology, and turning the UK into a "defence industrial superpower."
Public sector efficiencies
The government is targeting a 15% cut in running costs by the end of the decade, with £3.25bn allocated to reform and streamline departments.
Weaker growth forecast
The UK's economic growth forecast for 2025 has been halved to 1%. While inflation has started to ease, businesses are still operating in a challenging environment.
Bottom line?
This Spring Statement focused on the long game — but it leaves many SMEs stuck in the short term. There was little to address the day-to-day pressures SMEs are facing right now — no fresh support with funding, investment, or operational costs.
If you’re still dealing with rising costs, cash flow gaps, or plans to grow that need funding, we can help where the government hasn’t. Explore business loan options with us today and you could get funded in as little as 4 hours.
