Spring Forecast 2026: Analysis

Unlike recent fiscal events, the 2026 Spring Forecast was largely expected to be a non-event, with most predicting that the Chancellor would not be able to make further changes to either tax or spending following those previously announced in the Autumn.

During her speech, which lasted less than 30 minutes, she explained that her plan was already the right one, and the implication was therefore that no further adjustment was required.  By contrast, the opposition put this down to her having “nothing to say”.

All we can really say is, let us hope that the forecasts take into account recent global events, because the risk is that the figures presented could already potentially be out of date and if so, perhaps there could still be further tax changes between now and the Autumn Statement that will be needed to steady the ship if not.

Other than that, the most exciting thing about this announcement was that it happened on a Tuesday rather than the more traditional Wednesday.

Gravita will of course be reviewing the figures in further detail, and we will provide further updates should there be anything hidden in the detail.

For the time being, it leaves us to remind you that the changes due to be introduced in April 2026 remain as follows:

• The £2.5 million cap on 100% Business Property Relief and Agricultural Relief will still come into force on 6th April 2026, although this is an increase from the £1 million cap originally mooted. 50% relief will apply on any balance above £2.5 million
• The planned 2% increase on the tax rate applied to Dividends (at the basic and higher rate only) will go ahead from the same date, with similar being introduced in relation to interest and rental income from 2027
• Pensioners with income over £35,000 will need to deal with a claw back of some of their Winter Fuel Payment from this April
• No changes to the heading rates and thresholds for any of the main taxes
• Capital allowance rates will be cut by 4% in the main pool from April, but full expensing continues for new purchases
• As announced in January, Business rates relief of 15% will apply for qualifying pubs and live music venues in 2026-27

How Gravita can help

If you are likely to be affected by any of the above, then there may still be time to plan to maximise the reliefs currently available to you. Please contact the Gravita tax consultancy team for an initial discussion to find out how we can help.