All eyes were on Rachel Reeves last week Wednesday when the UK delivered the much anticipated Spring budget for 2025, including so interesting updates on the current state of the country鈥檚 economy, five-odd months after the Autumn budget speech.
Unsurprisingly, expectations were high and predictions were all over the place regarding changes that were to be made and other issues that may stay the same.
In anticipation of Reeves鈥� speech, we spoke to business leaders about what they were expecting and hoping to see in the UK鈥檚 Spring budget.
Now, in the wake of the announcement, we鈥檝e got experts鈥� reactions to the budget, including what experts believe this means for businesses in the UK.
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Key Takeaways from the 2025 Spring Budget Speech
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Budget speeches may not be quite as long as they have been in the past (fun fact: the longest ever continuous budget speech in the UK was about four hours and 45 minutes, delivered by William Gladstone in 1853), but Reeves still managed to pack in a whole lot of important information that has got business leaders spinning.
So, what were the main points she made? Here are the key takeaways from last week鈥檚 2025 Spring budget speech in the UK:
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- No New Tax Increases:听There will be no more increases in tax. Rather, the idea is to hold tax fraudsters to account, increasing this number by 20%.
- Inflation:听Inflation was recorded at 2.8% on Wednesday, the 26th, revealing quite a fall from the 11% that it reached under the Tories. However, inflation is predicted to reach 3.2% on average his year (as predicted by the Office for Budget Responsibility, OBR), before eventually dropping to about 2.1% by 2026. From there, the OBR is expecting it to settle at 2% by 2027, which is the target that鈥檚 been set by the Bank of England.
- Growth Forecast:听The UK鈥檚 OBR has set the forecast at a drop of 1%, from 2% to 1%. Meanwhile, the Bank of England is expecting the UK鈥檚 economy to grow by 0.7% by the end of 2025.
- Housing:听Housing is expected will result in a 0.2% boost to the UK鈥檚 GDP, and the OBR forecasts that 1.3 million new homes will be built in the next five years.
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So with that snapshot of the Spring budget speech in mind, here鈥檚 what business experts have to say about the Spring budget means for businesses in 2025.
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Our Experts:
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- Nigel Holmes: Tax Director of Research and Development at Ryan
- Emma Graham: Partner at Mewburn Ellis
- Ming Kong: Co-Founder and CEO of TG0
- Charlie Precious: Principal at Ryan
- Sam Hields: Partner at OpenOcean
- Laurent Descout: CEO and Co-Founder of Neo
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Nigel Holmes, Tax Director of Research and Development at Ryan
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鈥淭he 拢400 million defence innovation fund is a strong signal that defence R&D is being prioritised, particularly in AI and emerging technology. This creates a significant opportunity for UK tech companies, especially those working in automation, cybersecurity and data analytics, to align with the Ministry of Defence鈥檚 innovation goals.
Military contracts have been hard to access for smaller firms in the past. But this funding, if paired with procurement reform, could open the door to startups and scale-ups to play a greater role. R&D tax credits, if properly claimed, can give them the runway to innovate with confidence, especially in these high-complexity areas.
Small businesses should track how this funding is deployed, and ensure they鈥檙e audit-ready for R&D claims tied to high-complexity workstreams like AI, robotics, or materials engineering.鈥�
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Emma Graham, Partner at Mewburn Ellis
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鈥淭he UK plays host to a wealth of AI talent; with major companies such as Google鈥檚 DeepMind, OpenAI, Anthropic, Microsoft and Meta AI all having a significant presence in London.听 In terms of AI infrastructure and startup culture, it is already an attractive place for global investors in AI to invest.
鈥淚t鈥檚 fantastic to see the UK government recognising this potential and increasing spending in听cutting-edge AI technology.听 The investment should help the UK to build upon its strong foundations and hold its current position as the third largest AI market in the world.鈥�
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Ming Kong, Co-Founder and CEO of TG0
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Charlie Precious, Principal at Ryan
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鈥淸The 20225] Spring Statement was largely what the Chancellor promised,听 a non-fiscal event and in this case, no news is good news. After a period of constant change, many will welcome a sense of stability.
However, the significant downgrade in the UK鈥檚 OBR growth forecast from 2% to 1% will understandably raise alarm bells for many businesses already navigating a challenging economic climate.
Now more than ever, companies must ensure they鈥檙e not leaving money on the table, only paying exactly what they should be paying. That means utilising every available tax relief and incentive, such as full capital expensing and R&D tax relief, while also embracing the latest tax technology tools to ensure accuracy, compliance, and efficiency. These tools can make a huge difference in managing costs in a slower-growth environment.鈥�
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Sam Hields, Partner at OpenOcean
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鈥淭he Chancellor鈥檚 Spring Budget听sends a more balanced signal on innovation-led growth.听While backing the Oxford-Cambridge Arc as 鈥楨urope鈥檚 Silicon Valley鈥� may win headlines, the chancellor鈥檚听commitment to strategic partnerships with regions like Greater Manchester, West Yorkshire, and Glasgow through the National Wealth Fund is just as critical.
To build a globally competitive industry, the government must back regional tech hubs across the country. AI and enterprise software startups are scaling up outside London and the South East, with Belfast and Manchester leading the way. Access to high-quality capital at market-standard terms will be vital to allow startups to grow where they are, rather than be sucked into London or across the Atlantic. Success stories like York-founded planning software company Anaplan, recently acquired for over $10.7 billion, show that world-class tech can be built outside traditional hubs.
For founders and investors alike, confidence in the UK market hinges on more than flagship projects. It is crucial for the government to send a clear signal that the UK remains one of the best places to build, scale, and exit. That鈥檚 how we attract global talent, reverse the trend of startups listing abroad, and strengthen the entire venture ecosystem.鈥�
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听Laurent Descout, CEO and Co-Founder of听Neo
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鈥淭he lack of a clear commitment to university funding is a major concern. The UK fintech sector depends on a steady pipeline of highly skilled graduates, yet financial pressures on universities put this at risk. Without proper funding and incentives for research and spinouts, the UK鈥檚 leadership in fintech and financial innovation is in jeopardy.鈥�
听It is disappointing that the Chancellor failed to address the challenges facing SMEs. With company insolvencies at their highest level in a decade, businesses need real backing, not higher taxes and reduced incentives. The planned increase in capital gains tax on Business Asset Disposal Relief could deter investment in high-growth fintechs, making it harder for startups to scale and compete globally. The government must reconsider their approach and do more to ensure the UK remains an attractive place for entrepreneurs and investors.鈥�
