Stay Ahead with Insights from Darren Bee, Associate Director at Lansdown Insurance Brokers
The Spring Budget 2025, officially known as the Spring Statement, is set to be announced on 26th March 2025 by Chancellor Rachel Reeves. While this will not be a full Budget, the statement will provide an Economic and Fiscal Forecast and may introduce some tax adjustments. For property professionals, including developers, property managers, and landlords, staying informed about potential changes is crucial.
Key Highlights of the Spring Budget 2025
No full budget – just a Spring statement
Chancellor Rachel Reeves has committed to limiting major fiscal events to once per year, meaning there will be no full Spring Budget in 2025. Instead, the government will publish an Economic and Fiscal Forecast, aiming to provide stability for businesses and families. However, some tax changes could still be introduced in response to economic conditions and business concerns. The next significant fiscal update is expected in Autumn 2025 (likely in October or November). Any major tax changes will be announced then, rather than in the March Spring Statement.
How will the spring budget affect property professionals?
While no major property tax policies are expected in the Spring Statement, there are some key areas to monitor:
- Stamp Duty Land Tax (SDLT): No major reforms are expected, though potential future changes could be hinted at.
- Capital Gains Tax (CGT): Adjustments may be considered following the rate changes introduced in Autumn 2024.
- Mortgage Market & Interest Rates: The government may provide insights on housing affordability and lending policies, which could impact the property sector.
While no drastic property tax changes are expected, investors should watch for updates on Stamp Duty, Capital Gains Tax, and mortgage market trends.
Business Tax Adjustments – What to watch for
Despite the commitment to a single major fiscal event per year, smaller tax adjustments may still be announced in March. Property businesses should keep an eye on:
- Employer National Insurance rates
- Employment Allowances
- Business Rates & Tax Reliefs
Potential adjustments to National Insurance Contributions (NICs)
One of the most debated tax policies from the Autumn Budget 2024 was the increase in Employer National Insurance Contributions (NICs):
- Employer NICs will rise to 15% from 6th April 6 2025
- The NIC threshold will drop to £5,000, impacting a larger number of businesses
Businesses, including those in the property sector, have voiced concerns over these changes, citing:
- Higher costs for employers
- Potential job losses
- Increased prices for consumers
There is speculation that the Spring Statement could include modifications or delays to these NIC increases in response to criticism from businesses and charities.
Will National Insurance Changes Impact Property Businesses? The increase in Employer NICs could affect estate agencies, property management firms, and developers. However, the government may revise or delay these changes in response to industry backlash.
Final Thoughts
The Spring Statement 2025 on 26th March may not introduce major tax overhauls, but it could bring business tax adjustments, National Insurance changes, and employment regulation updates. For property professionals, staying ahead of these developments is essential.
This article is for informational purposes only and should not be considered legal advice.
About Lansdown Insurance Brokers
Lansdown Insurance Brokers are specialists in Landlord Insurance and HMO Landlord Insurance helping property professionals navigate the complexities of insurance and risk management. Whether you’re a landlord, letting agent, or property owner call the team on 01242 524498 or email enquiries@lansdowninsurance.com.
Lansdown is part of the Benefact Group, a charity-owned, international family of financial services companies that gives all available profits to charity and good causes.