Spring Statement: overview for HR

The Chancellor, Rachel Reeves, has delivered her first Spring Statement outlining the Government’s plans to bring about economic growth and stability.

She told MPs: “This Labour government was elected to bring change to our country, provide security for working people and deliver a decade of national renewal.”

“The government's plan to get Britain building will drive growth in the economy and put more money in people’s pockets.”

There were no surprises for HR, with the focus on reforms to the public sector and welfare cuts. The Chancellor said: “If you can work you should work, but if you can’t work you should be properly supported.” Reforms to the welfare system will include £1 billion of personalised employment support to those not in work.

In the public sector, the Government will launch voluntary exit schemes to reduce civil service numbers, aiming to reduce headcount by 10,000 roles primarily from HR and administration.

It was confirmed that the Government is sticking to its promise not to raise employee taxes and there were no further tax increases for businesses, although it will go further to crackdown on tax avoidance/evasion.

The Chancellor said: “As I promised in the autumn, this statement does not contain any further tax increases. But when working people are paying their taxes while still struggling with the cost of living, it cannot be right that others are still evading what they rightly owe.” This will be welcome news for employers, particularly with increases in employers’ National Insurance contributions, National Minimum Wage, Statutory Sick Pay and other statutory payments on the way in April 2025.

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