Spring Statement March 2025
The key to the Spring Statement is that the Chancellor set the overall size of government departmental spending for the purposes of fiscal planning. The distribution of the spending between departments for the next three years will be set in June at the Comprehensive Spending Review.
Headlines
- Growth projections for the economy halved in 2025, before being increased for the next 4 years.
- Total departmental spending will rise by 4.0% in 2026/27, falling to an average of 1.2% for the rest of the projection. This is a slight decrease from 1.3% previously scheduled. This means an average of 0.8% cuts in real terms for non-protected budgets, such as further education.
- The distribution of departmental spending (who gets what) will be decided in the Comprehensive Spending Review in June.
- The government has raised or saved £14.0bn to restore its £9.9bn headroom against its first fiscal rule.
- The Apprenticeship Levy is set to raise £4.8bn by 2029/30.
If you are an AELP member, you can read further analysis here.
Spring Statement March 2025
For any questions, please contact Ciaran Roche, Public Affairs Manager, [email protected]
Last published: 27/03/2025
