Updated on
26th Mar 2025
On March 26, chancellor Rachel Reeves shared the spring statement, reflecting on the changes made in 2024's autumn budget, and announcing adjustments for the forecasts ahead.
Opening her speech, she said that the decisions made in the October budget were "non-negotiable", and that they will bring stability to the economy.
In the 2024 autumn budget, the chancellor presented an increase in minimum wage, National Insurance freeze for employees and changes to business rates.
But what does the new spring statement mean for aesthetic businesses? Here’s what you need to know…
Key Points
- Welfare cuts for new claimants: The government plans to implement welfare cuts aimed at new claimants, with the goal of saving £4.8 billion. This could affect potential employees in the aesthetic sector who rely on certain benefits, potentially influencing their availability or willingness to work.
- Crackdown on tax avoidance and evasion: There are no further tax increases in this statement but an initiative to raise £1 billion through stricter enforcement against tax avoidance and evasion has been announced. Clinic owners should ensure their tax affairs are in order to avoid penalties, as small businesses may be scrutinised more closely.
- No further tax increases announced: There are no additional tax increases at this time which will allow business owners to plan their finances without the concern of further increased tax burdens.
- Economic growth and inflation forecasts: The Office for Budget Responsibility (OBR) has forecasted steady GDP growth and a reduction in net debt starting from 2026-27. Additionally, inflation is projected at 3.2% for this year, which is higher than previously expected. These economic indicators could influence consumer spending patterns and potentially impact revenue.
