 HM Treasury website See a guide to Budget statement buzzwords. More... Autumn Statement 2024 report: what did Rachel Reeves reveal? Chancellor of the Exchequer Rachel Reeves delivered her Autumn Statement on Wednesday 30th October to the House of Commons and updated MPs on the country's finances and the Government's plans for tax and public spending, based on the latest forecasts from the Office for Budget Responsibility (OBR). The Chancellor's statement provided information on the UK Government's anticipated revenue generation and announcements on plans for taxation and public spending. The spending and borrowing announcements were stunning with taxes increasing by £40 billion. Report Posted: 241030 @ 1455 Report of the Spring Statement 2025 As usual we will have a prompt report on what the Chancellor has to say shortly after she finishes her statement to MPs in the House of Commons, highlighting the key points of interest to V8 Register members. Views on the current situation seen recently online. BBC & BDO & IFS & OBR Released: 250316 |
Spring
Statement 2025 The date has been announced for the Spring Statement as Wednesday 26th March 2025. Rachel Reeves has committed to a single major fiscal event each year to give stability and certainty on upcoming tax changes. The Treasury has so far ruled out any emergency Budget, but nevertheless the proposed Spring Statement could end up taking on a greater significance than currently intended. According to the media, a Treasury spokesman did not rule out tax increases in the Spring 2025, explaining that "the department would plan for all scenarios". Current situation The Autumn Budget 2024 has already affected the UK economy, particularly through the proposed rise in employers' national insurance payments. The economy appears to be slowing down and job vacancies are falling. With the increase in NICs (National Insurance contributions) coming on 6th April 2025, those costs could be passed on by businesses to consumers or the costs saved ahead of the hit by employers cutting back on hiring workers. Reeves could help economic growth by encouraging employers to invest in people by making it less costly to employ them. A move in that direction would help to boost business confidence, which took a knock after her Autumn Budget in 2024. But it is not just employers' NICs which are rising, but also the National Living Wage, on top of increased employment rights - such as a day one right to sick pay. More widely there is the challenge of stagnation in the eurozone but also the new US administration under Trump imposing "scatter-gun" tariffs on imports to the USA from a hit list of countries including the UK. With the UK economy seen to be underperforming and global factors indirectly impacting the UK, there is growing speculation over whether the Chancellor will break her self-imposed rules on borrowing. Her two main rules are: not to borrow to fund day-to-day public spending and to get debt falling as a share of national income by the end of this parliament. The OBR's forecast is expected to confirm that the £9.9bn financial buffer to meet her budget rule by the 2029-30 financial year has been wiped out. Reeves has repeatedly said her rules are "non-negotiable" but ahead of the Spring Statement 2025 it's widely reported that the Treasury has drafted plans for several billion pounds of spending cuts. It is understood welfare spending is in the firing line, but other UK Government departments will also see budgets pruned. OBR What could we see in the Spring Statement 2025 of interest to classic car enthusiasts? Possible changes in fuel duty A newspaper report in August 2024 said Rachel Reeves was weighing up lifting the 13-year-freeze on fuel duty, but that she faced a dilemma as a poll commissioned by the newspaper showed voters are not in favour of it. The impact of a fuel duty increase would be more than a hit on drivers' motoring costs as it would have a compounding effect in the UK economy more widely with higher transport costs for suppliers delivering goods and services and higher public transport costs. Fortunately the Autumn Budget 2024 included a freeze on fuel duty rates for 2025-26, a tax cut worth £3 billion over 2025-26 which represents a £59 saving for the average car driver. The temporary 5p cut in fuel duty rates was extended by 12 months and will expire on 22nd March 2026 so whether the fuel duty cut will be further extended or cancelled in the Spring Statement 2025 is a key question. Changes in Vehicle Excise Duty The Government raised standard Vehicle Excise Duty (VED) rates for cars, vans and motorcycles, excluding first year rates for cars, in line with the RPI from 1st April 2025. There was no mention of any adjustments to the current VED exemption arrangement for historic vehicles over 40 years old. VED on Electric Vehicles from April 2025 With the UK Government's ban on the sale of new petrol and diesel vehicles from 2030 the reform of motor taxes had become an urgent question for the Treasury because the switch to electric cars means almost £30bn in fuel duty raised annually for the Treasury will need to be replaced. It was announced VED will be paid by electric vehicles from April 2025. Other tax rises Press reports have hinted UK Government sources have been keen to state that the Spring Statement 2025 is not a major budget event because it will not include tax rises, but it will probably have more welfare cuts and plans to cut more than 10,000 civil service jobs as Whitehall departments battle to stay within spending limits under a new Government efficiency drive. As usual we will have a prompt report on the Chancellor's statement and any matters of interest to classic car enthusiasts. |
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