Chancellor Rachel Reeves has outlined a transformative vision for Britain’s future, anchored in the government’s Plan for Change. This strategy is designed to drive economic growth, strengthen the National Health Service (NHS), and reinforce national security—all while maintaining financial stability.
A reset for stability and growth
Last autumn’s Budget marked a significant fiscal reset, ensuring a sustainable financial future for the UK. The government tackled £22 billion in financial pressures, introduced groundbreaking tax reforms, and implemented strong fiscal rules to protect working households. These decisive measures have safeguarded public finances while enabling vital investments in public services and economic growth.
Supporting incomes and strengthening fairness
The Chancellor reaffirmed the government’s commitment to supporting working families, citing last year’s National Minimum Wage increase and fuel duty freeze. These policies have already had a tangible impact, with the Bank of England reducing interest rates three times since the start of the parliamentary term. By the end of 2024, real wages are expected to rise at their fastest pace in over three years, alleviating the cost-of-living pressures on millions.
Despite global economic challenges—ranging from geopolitical tensions in Europe to rising borrowing costs—the UK remains resilient as a leading trading economy. The Chancellor assured that, despite these headwinds, Britain is well-positioned to navigate uncertainty and sustain long-term growth.
Economic resilience in a changing world
Economic forecasts now suggest Britain will outpace previous growth predictions from 2026 onwards. Thanks to decisive action, the government has met its fiscal targets two years ahead of schedule, maintaining a balance between financial discipline and pro-growth policies.
With a solid foundation in place, the government is adopting bold measures to boost public services, economic expansion, and national security. This includes a strong focus on protecting working families’ financial futures and fortifying the country’s long-term prosperity.
A pledge to national security
A key announcement in the Spring Statement is the government’s fully funded commitment to increasing defence spending. By 2027, defence expenditure will reach 2.5% of GDP, with an extra £2.2 billion allocated to the Ministry of Defence (MOD) next year alone. This investment reinforces the UK’s global security leadership and strengthens its partnerships with NATO allies.
Additionally, the government is reforming public services to improve efficiency while ensuring that welfare spending reaches those who need it most. Enhancing tax collection efforts will also help ensure tax fairness and bolster public finances.
Driving growth through investment and innovation
Investment is central to the Plan for Change. Over the next five years, the government is committing £13 billion to infrastructure projects and launching a construction skills initiative to train 60,000 new workers. A further £2 billion is earmarked for social and affordable housing, addressing the UK’s housing crisis.
Major planning reforms will also drive economic expansion. Updates to the National Planning and Policy Framework (NPPF) are expected to lead to the construction of 170,000 additional homes, adding £6.8 billion to the economy by 2029/30. By 2034/35, GDP growth from these reforms could exceed 0.4%—all at no direct fiscal cost.
Beyond housing: Transformational reforms for lasting growth
These reforms will also have a broader economic impact. By 2029/30, they are projected to reduce public borrowing by £3.4 billion, strengthening the UK’s financial stability. The government’s approach—focused on capital investment, regulatory improvements, and the proposed Planning and Infrastructure Bill—demonstrates a clear commitment to sustainable growth.
Building a stronger future for Britain
The Chancellor’s Plan for Change is more than a response to today’s challenges; it is a roadmap for a thriving, inclusive, and globally competitive Britain. Through a combination of fiscal responsibility, strategic investment, and innovative reform, the UK is poised for long-term success.
With a vision that balances short-term relief with long-term stability, the government is setting the stage for a prosperous future—one where working families, businesses, and public services all benefit.
This bold and decisive agenda will shape Britain’s economic future, ensuring stability, security, and sustained growth for generations to come.
Find an adviser that meets your needs
We have over 1250 local advisers & staff specialising in investment advice all the way through to retirement planning. Provide some basic details through our quick and easy to use online tool, and we’ll provide you with the perfect match.
Alternatively, sign up to our newsletter to stay up to date with our latest news and expert insights.
THIS ARTICLE DOES NOT CONSTITUTE TAX, LEGAL OR FINANCIAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.
THE VALUE OF YOUR INVESTMENTS (AND ANY INCOME FROM THEM) CAN GO DOWN AS WELL AS UP, WHICH WOULD HAVE AN IMPACT ON THE LEVEL OF PENSION BENEFITS AVAILABLE.
