What to expect from the Spring Statement 2026

Published: February 2026

The upcoming Spring Statement on 3 March 2026 is unlikely to deliver the drama of a Budget, but it is not one we are overlooking.

While traditionally positioned as an update on the Chancellor’s bank balance, the Spring Statement often signals the government’s broader direction of travel for tax and spending measures.

The Chancellor Rachel Reeve’s need to find measures to raise funds has eased after receiving a record-breaking budget surplus of £30.4bn in January 2026, £15.9bn higher than in January 2025, with self-assessed income and capital gains tax (CGT) receipts of £46.4bn at their highest on record since 1993.  This presents a healthier fiscal position for the Chancellor, which was driven by increases in tax measures and interest rate falls for government borrowing.

So, what does this mean for the Spring Statement?

With the May elections looming, we may see a toned-down statement from the Chancellor on future measures towards tax and spending, as suggested by the lack of headline grabbing rumours from the media in the build-up, unlike for the Budget in November 2025.

However, there are still a number of topics we will be keeping an eye on for our clients:

• Capital Gains Tax – with increasing CGT rates proving to be a lucrative source of revenue, will Rachel Reeves signal that further tax increases are on the way, or possibly reductions to the CGT allowances that we have seen in recent years?
• Inheritance Tax – will there be any further adjustments to Business Relief or Agricultural Relief, following the easing of the IHT increases affecting business owners and farmers in December 2025?
• Dividend tax – with dividend allowances already reduced in recent years, further incremental tightening cannot be ruled out – particularly for business owners drawing income tax-efficiently.  Might this be flagged?

We will be writing a blog after the Spring Statement providing our comments on any notable announcements made.

If you are concerned with any changes announced from the Spring Statement that impact your financial position, we would be pleased to arrange a confidential discussion.  Please call one of our Chartered Financial Planners on 01223 233331 or email info@mmwealth.co.uk.

Disclaimer

Opinions constitute our judgment as of this date and are subject to change without warning.  This article is for general information only and does not constitute advice.  All contents are based on our understanding of current taxation and legislation, which is subject to change.

The information in this article is not intended as an offer or solicitation to buy or sell securities or any other investment, nor does it constitute a personal recommendation.

The Financial Conduct Authority does not regulate estate planning and tax planning.