Chancellor Rachel Reeves delivered the 2026 Spring Statement on 3 March 2026, presenting updated economic forecasts rather than introducing major new tax measures.
For many households and business owners, the key message is continuity rather than change, with most significant tax decisions having already been announced in the Autumn Budget 2025.
At Wells Gibson, we continually monitor fiscal policy and economic developments to ensure our clients are well positioned ahead of policy changes. Below we summarise where things stand now and what it may mean for individuals, families, investors and business owners.
Key Highlights
- No new personal tax rises announced in the Spring Statement
- Income tax thresholds remain frozen, continuing the effect of fiscal drag
- Inheritance tax thresholds remain frozen, gradually bringing more estates into scope
- Pension death benefit changes from April 2027 remain confirmed
- UK growth forecasts revised slightly lower for 2026
- Inflation expected to return close to the Bank of England’s 2% target by 2027
- Government borrowing forecast lower than previously expected
Autumn Budget 2025 – Where We Are Now
Most of the structural tax decisions affecting households and investors were confirmed in the Autumn Budget 2025. The Spring Statement largely reaffirmed these measures rather than introducing new ones.
Key measures already in place include:
- Income tax thresholds frozen until 2028
- Inheritance tax nil-rate band frozen at £325,000
- Residence nil-rate band frozen at £175,000
- Dividend allowance reduced to £500
- Capital gains tax allowances significantly reduced
- Pension funds expected to fall within estates for inheritance tax purposes from April 2027
These measures mean that even without further tax increases, more individuals may gradually pay higher levels of tax over time.
For high-net-worth households, coordinated planning across investment strategy, pensions and estate planning remains particularly important.
Economic Outlook
The Office for Budget Responsibility (OBR) published updated forecasts alongside the Spring Statement.
Growth
UK GDP is forecast to grow by 1.1% in 2026, slightly lower than previous expectations.
Growth is projected to strengthen modestly thereafter:
- 1.6% in 2027
- 1.6% in 2028
- 1.5% in 2029 and 2030
Inflation
Consumer price inflation is expected to fall from 3.4% in 2025 to around 2.3% in 2026 before reaching the Bank of England’s 2% target from 2027 onwards.
Unemployment
The OBR expects unemployment to peak around 5.3% in 2026 before gradually declining.
Public Finances
Government borrowing is projected to fall over the forecast period, improving the government’s fiscal headroom.
Living Standards
The government highlighted projections suggesting households could be around £1,000 better off annually by the next general election once inflation is taken into account.
Savings and Investments
With inflation expected to fall towards the Bank of England’s target, the real value of savings may stabilise.
However, modest economic growth and uncertain global conditions reinforce the importance of maintaining diversified long-term investment strategies.
For many investors, balancing risk and return across a globally diversified portfolio remains key to preserving and growing wealth over time.
Personal Tax and Legacy Planning
No new income tax changes were announced in the Spring Statement.
However, frozen personal allowances and tax thresholds mean many people will gradually move into higher tax bands over time.
Inheritance tax thresholds also remain frozen, meaning more estates may fall within the inheritance tax net.
The previously announced changes to pension death benefits from April 2027 further underline the importance of reviewing estate planning strategies.
Key considerations include reviewing wills, ensuring beneficiary nominations remain up to date and considering appropriate lifetime gifting strategies.
More information on inheritance tax can be found here:
https://www.gov.uk/inheritance-tax
Pension Planning
Although pensions were not a central feature of the Spring Statement, several ongoing developments remain important.
The State Pension continues to increase under the triple lock, which may affect retirement income planning and tax positions.
Individuals approaching or in retirement may wish to review how pension withdrawals interact with other income sources and tax thresholds.
Those who have not done so may also wish to review their State Pension entitlement: https://www.gov.uk/check-state-pension
Business Owners
No new business tax changes were introduced in this update, but the wider tax environment continues to reflect measures announced previously.
Fuel duty relief is scheduled to end later in 2026, which may increase operating costs for some businesses.
Slower economic growth forecasts may also mean businesses continue to experience cautious consumer demand.
Business owners may wish to review salary and dividend strategies, succession planning and longer-term exit strategies as part of their wider wealth planning.
Planning Actions to Review in 2026
While the Spring Statement introduced few new measures, the combination of frozen allowances and existing policy changes means this remains an important year to review your financial plan.
Five areas worth revisiting include:
1. Review Your Inheritance Tax Position
Frozen thresholds mean more estates are gradually becoming taxable. Reviewing wills, gifting strategies and pension beneficiary nominations can help ensure wealth passes to the right people in the most tax-efficient way.
2. Maximise Tax Allowances
Making full use of available allowances such as ISAs, pensions and annual gifting exemptions can help improve long-term outcomes.
3. Review Pension and Retirement Income Strategy
With the State Pension increasing and changes to pension inheritance rules expected from April 2027, reviewing how pension income interacts with other income sources can be beneficial.
4. Ensure Investments Remain Aligned with Long-Term Goals
Maintaining a disciplined, diversified investment strategy can help navigate market volatility and changing economic conditions.
5. Review Family and Legacy Planning
Family circumstances and asset values evolve over time. Periodic reviews can ensure estate plans continue to reflect your wishes.
Next Steps
Any areas relevant to your circumstances will naturally be discussed as part of your ongoing relationship with Wells Gibson and reviewed at your Annual Wealth Plan Meeting – planning is most effective when decisions are taken early, thoughtfully and with the long term in mind.
If you have any questions or would like to discuss any aspect of the Spring Statement, please contact the Wells Gibson Wealth Planning team.
Risk Warning
This article is provided for information and general awareness purposes only and does not constitute personal financial advice, financial planning advice, or a recommendation to take any specific course of action.
The content reflects our understanding of the UK Spring Statement 2026 and current legislation at the time of publication. Tax rules, government policy and economic forecasts may change in the future, and the impact of any policy announcements will depend on individual circumstances.
Any references to tax planning, pensions, investments or estate planning strategies are provided for general illustration only and should not be relied upon when making financial decisions.
The value of investments and any income from them can fall as well as rise, and you may not get back the amount originally invested. Past performance is not a reliable indicator of future results.
This article does not take into account your personal objectives, financial situation, or risk tolerance. Professional financial advice should be sought before taking action based on any of the information contained in this article.
Wells Gibson Limited is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 731027).
