The Chancellor’s Spring Statement largely aligned with expectations, serving as an economic update rather than a major fiscal event. However, one of the most significant takeaways was the renewed support for the UK construction sector – an industry that has faced persistent challenges in recent months.

Alison Smith, Head of Business Services at Duncan & Toplis, said:

“The Chancellor’s commitment to revitalising the UK construction sector couldn’t come at a better time. With monthly construction output falling by 0.2% in both December 2024 and January 2025 (ONS), businesses in the sector have been under increasing pressure.

“The decline has been largely driven by a 0.7% drop in new work, though repair and maintenance provided some relief with a modest 0.4% rise. Against this backdrop, the government’s £2 billion pledge for new affordable homes is a vital intervention that could help restore confidence and stimulate much-needed housebuilding activity.

“This is further reinforced by the earlier announcement of a £600 million investment in construction sector training. Addressing the sector’s skills gap will be crucial to ensuring businesses can seize new opportunities and meet future demand. With rising material costs and economic uncertainty, this injection of funding could provide much-needed stability and long-term growth – something the Chancellor vocally affirms to support.”

A steadying statement for SMEs, but not a game-changer

While the Spring Statement lacked major fiscal policy changes, for many, it paints the picture of an economy in transition – rooted in tentative optimism, yet still requiring financial caution.

Peter Wilson, Managing Director of Duncan & Toplis group’s wealth management service, Castlegate Financial Management, said:

“For individuals, the outlook is improving. Real household disposable income is set to rise by an average of 0.5% per year from 2025, in total 2% between now and 2030,  nearly doubling previous forecasts, with the average household expected to be over £500 better off. Stronger wage growth and easing inflation offer a welcome reprieve after years of financial strain.

“But for businesses, the message is clear: resilience is non-negotiable. The government’s drive for greater tax compliance, alongside major spending cuts, means firms must tighten financial controls while navigating an economy still growing at a sluggish 1% in 2025.

“Market reaction has been measured; gilt yields have edged down slightly and the pound saw only minor fluctuations. Investors see this as a steadying statement rather than a transformative one. The government’s challenge now is turning economic stabilisation into sustained business confidence.

“What’s particularly reassuring is that there have been no further tax changes. The savings are instead coming from more macroeconomic shifts, with cuts in civil service and increased focus on tackling tax fraud compliance. This means we should start to see consumer confidence building, alongside new markets and opportunities for financial growth.

“For households, this is a moment to rebuild. For businesses, it’s a call to prepare. The road ahead may be steadier, but it still remains uncertain.”

For more information about the Duncan & Toplis group and its range of services, including financial planning, tax and business services, visit www.duncantoplis.co.uk.