Steadfast Commitment to Economic Growth
Despite a downward revision in short-term growth forecasts from 2% to 1%, the government remains dedicated to fostering economic expansion.

Boosting Defence Spending
In response to a rapidly evolving global landscape, defence spending will see a significant increase.

Welfare System Overhaul
Stricter tests for personal independence payments are part of the changes to the welfare system.

Civil Service Transformation
The civil service will be streamlined with the introduction of an accelerated new Transformation Fund.

Investment in Housing
There will be increased investment in social and affordable housing.

Addressing Skills Shortages
Efforts will be made to tackle skills shortages, particularly in the construction sector.

Reduction in Tax Evasion
The Chancellor highlighted the government's commitment to reducing tax evasion, with investments in technology and HMRC capacity expected to raise an additional £1bn in revenue.

Upcoming Spending Review
The results of a spending review, which will allocate government spending for the three years from 2026/27 to 2028/29, will be announced on 11 June 2025.

R&D Tax Relief Advance Clearances
HMRC has opened a consultation until 26 May 2025 to better target non-compliant companies while assisting those making accurate claims. Discussions include mandatory advanced assurance for high non-compliance areas, voluntary assurances for high-potential companies, and limiting the service to customers using registered agents.

Making Tax Digital (MTD) for Income Tax
A new policy paper announced the expansion of MTD for Income Tax to include more small businesses from April 2028, extending to sole traders and landlords with income over £20,000.