Chancellor Rachel Reeves has scheduled the UK’s Spring Statement for 26 March 2025. This event will feature the Office for Budget Responsibility’s (OBR) latest economic and fiscal forecasts, accompanied by a parliamentary statement from the Chancellor. Reeves has emphasized her commitment to delivering one major fiscal event annually to provide stability and certainty for families and businesses, supporting the government’s growth mission. 

While the Spring Statement is not traditionally a full budget, it offers an opportunity to address pressing economic issues. Given the current economic challenges, including a £22 billion deficit in public finances and recent economic contractions, there is speculation about potential adjustments to previously announced measures.

One area of focus is the planned increase in employers’ National Insurance Contributions (NICs). Set to rise to 15% on salaries above £5,000 from April 2025, this proposal has faced significant backlash from businesses and the charity sector. Experts suggest that the Spring Statement could be an opportunity for the Chancellor to reconsider or modify this measure to alleviate concerns. 

Additionally, the government has announced plans for a multi-year Spending Review, now scheduled to conclude in June 2025. This review aims to embed a mission-led approach, drive public service reform, and optimize the use of technology in service delivery. The outcomes of this review will set spending plans for at least three years, influencing future fiscal policies and priorities. 

In the lead-up to the Spring Statement, various sectors are voicing their concerns and expectations. For instance, the farming industry is organizing a UK-wide day of action on 25 January to protest proposed inheritance tax changes affecting family farms. Such demonstrations highlight the pressures on the Chancellor to address sector-specific issues in her forthcoming statement. 

It’s also worth noting that the Spring Statement will occur amidst ongoing economic challenges, including sluggish growth and high inflation. The Chancellor has expressed her determination to restore economic stability and has indicated that while the Spring Statement may not introduce new tax hikes or increased borrowing, it will provide an update on the government’s fiscal strategy and economic outlook. 

In summary, while the Spring Statement on 26 March 2025 is not expected to serve as a full budget, it presents an opportunity for the Chancellor to provide updates on the UK’s economic situation, potentially adjust previously announced measures, and outline the government’s fiscal strategy in response to current economic challenges.

The ongoing refusal of the UK government to compensate women affected by changes to the state pension age, often referred to as WASPI (Women Against State Pension Inequality) claimants, continues to provoke widespread criticism. This controversy centres around women born in the 1950s who were significantly impacted by the transition from a state pension age of 60 to 66, introduced in the Pensions Act 1995 and accelerated by the Pensions Act 2011. Many argue that the lack of adequate notice left them unprepared, causing severe financial hardship and emotional distress.

The WASPI campaign highlights the struggles of women who, having worked and contributed to the state pension system for decades, found themselves blindsided by the pension age changes. While the government insists these reforms were necessary to ensure the sustainability of the pension system and to address gender inequality in retirement ages, critics argue that the abrupt nature of the changes disproportionately affected this group of women. For many, the issue lies not with the equalisation itself but with the failure to provide sufficient warning and transitional arrangements.

A key grievance among WASPI women is the absence of proper compensation for the financial and emotional damage caused. Many of these women were relying on receiving their pensions at 60, having made life plans and financial decisions based on this expectation. The sudden extension of their working years, often without the chance to save more or adjust plans, has pushed thousands into financial precarity. Some were forced to take on unsuitable jobs, dip into savings, or rely on benefits, undermining the dignity and security they had expected in their later years.

The government’s refusal to compensate these women has been particularly contentious given findings from the Parliamentary and Health Service Ombudsman (PHSO). The Ombudsman found that the Department for Work and Pensions (DWP) was guilty of maladministration, citing its failure to adequately communicate the changes to affected women. Despite this ruling, the government has maintained its stance, arguing that compensation is not warranted and claiming that the measures were implemented fairly.

This position has sparked outrage among campaigners, many of whom view it as an abdication of responsibility. WASPI campaigners have consistently argued that the government’s failure to act on the Ombudsman’s findings undermines public trust in institutions and suggests a lack of accountability. The refusal to provide redress has also intensified calls for judicial review and further legal challenges, as many affected women refuse to accept the decision without a fight.

Critics of the government’s approach point to the broader societal implications of ignoring the plight of WASPI women. This case raises fundamental questions about fairness, justice, and the treatment of citizens who have contributed to the welfare state. Many believe that the government’s intransigence risks alienating a generation of women who feel betrayed by the system.

Ultimately, the WASPI controversy reflects a broader tension between fiscal responsibility and social justice. While the government prioritises managing public finances, the affected women argue that their sacrifice has come at an unacceptable cost. As the campaign for compensation continues, the government’s refusal to act remains a stain on its commitment to fairness and equality. Without resolution, the issue is likely to remain a significant point of contention in public discourse.

Selling online? From 2024, digital platforms must report your information to HMRC if sales exceed £1,700 or 30 goods a year. Casual sellers are exempt, but regular traders may need to register for Self-Assessment.

New rules, which became effective from 1 January 2024, require digital platform operators in the UK to collect and verify information about sellers on their platforms. The first reports due under these new rules must be submitted by 31 January 2025. HMRC has released a press release to make it clear that the tax rules for sellers have not changed despite rumours to the contrary.

These new rules mean that if you are using online platforms to sell goods or services, any pertinent information collected about you between 1 January 2024 to 31 December 2024 will be reported to HMRC by 31 January 2025. The information will only be shared with HMRC if you sell 30 or more goods or earn approximately £1,700 (equivalent to EURO2,000) or more in a calendar year. The online sellers are also required to give you a copy of the reported information. This can help if you have to make tax returns.

HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said:

We cannot be clearer – if you are not trading and just occasionally sell unwanted items online – there is no tax due. As has always been the case, some people who are trading through websites or selling services online may need to be paying tax and registering for self-assessment.

You may need to register for self-assessment and pay tax if you:

• buy goods for resale or make goods with the intention of selling them for a profit;
• offer a service through a digital platform – such as being a delivery driver or letting out a holiday home through a website;
• AND generate a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year.

Can’t pay your tax bill in full by 31 January 2025? HMRC’s online Time to Pay system lets self-assessment taxpayers spread the cost over monthly instalments. With plans available for tax bills up to £30,000, this flexible option can help you avoid late payment penalties.

Those eligible for the self-serve option can arrange payments online without needing to contact an HMRC adviser. HMRC has revealed that more than 15,000 taxpayers have already set up a Time to Pay payment plan for the 2023-24 tax year.

To qualify for the online Time to Pay option, taxpayers must meet these conditions:

• No outstanding tax returns
• No other tax debts
• No existing HMRC payment plans

For taxpayers who do not meet these requirements or owe more than £30,000, other payment arrangements may be available. These are typically agreed on a case-by-case basis, tailored to individual circumstances and liabilities, allowing businesses and individuals to pay off their debt over time.

HMRC’s Director General for Customer Services, said:

We’re here to help customers get their tax right and if you are worried about how to pay your self-assessment bill, help and support is available. Customers can set up their online payment plan to suit their own financial circumstances and can spread those payments across a maximum of 12 months. It is a valuable option for someone needing extra flexibility in meeting their tax obligations.

Over one million parents have now claimed Child Benefit online or via the HMRC app, with 87% of new claims using this speedy service. If you’ve recently had a baby or a child joins your family, applying online ensures you get support quickly-right when you need it most.

HMRC’s Director General for Customer Services, said:

“Having a baby is a busy and expensive time but claiming Child Benefit online or via the app means you’ll get cash in your bank account as soon as possible. Claim now and you could get your first payment in time for your baby’s first Christmas. Download the HMRC app today.”

You can apply for Child Benefit starting the day after you register your child’s birth or when a child comes to live with you. Claims can be backdated up to 12 weeks. Applying online is usually the fastest way to complete your claim.

If you are unable to claim online, you can complete the Child Benefit form CH2 and send it to the Child Benefit Office. The address can be found on the form. If you are claiming for more than two children, you will need to complete the additional child form CH2(CS) and send it with your CH2 form. Alternatively, you can contact HMRC by phone if online or postal methods are not suitable.

Child Benefit is typically available for children who move to the UK. However, there are certain requirements that must be met to claim. If a child receiving Child Benefit moves permanently abroad, HMRC must be notified as soon as possible.

The child benefit rates for the only or eldest child in a family is currently £25.60 a week and the weekly rate for all other children is £16.95. The rates are set to increase to £26.05 and £17.25 respectively from April 2025.