The Spring Statement offered very little cheer to small business owners that are grappling with rising costs. The Spring Statement was light on announcements and long on promises – chancellor Rachel Reeves had no tax changes to pull out of a hat; instead, she took the opportunity to unveil her growth strategy for the UK economy and outline new spending commitments - all while keeping to her iron-clad fiscal rules.

For small businesses and retailers, there was nothing in the Spring Statement to stop them from worrying about the impending increase in Employers' National Insurance Contributions (NICs), higher business rates bills and a rise in the National Living Wage.

These are the changes that the chancellor announced at the last Autumn Budget that came into effect from the beginning of April 2025.

Business taxes

• Corporation tax: no change
• VAT: no change.
• VAT late payment penalties: from April 2025, the new rates will be 3% of the tax outstanding where tax is overdue by 15 days, plus 3% where tax is overdue by 30 days, plus 10% per annum where tax is overdue by 31 days or more
• Business rates: no change
• Capital allowances: no change
• Employers' NICs: to increase by 1.2% to 15% from April 2025 (as previously announced)
• Employment allowance: to increase to £10,500 per year from April 2025 (as previously announced)
• Regulation action plan: the government commits to cut the administrative costs of regulation on business by 25% by the end of the Parliament.

Personal taxes

• Income tax: no change
• Tax thresholds: frozen until 2028 (as previously announced)
• Employees' National Insurance contributions: no change
• Self-employed National Insurance: no change
• Making Tax Digital (MTD): the rollout of MTD for Income Tax Self-Assessment (ITSA) will be extended to include sole traders and landlords with incomes over £20,000 from April 2028
• Unpaid taxes: new crackdown on tax evasion and fraud
• Non-domiciled taxation: non-dom status will be abolished from April 2025. It will be replaced with a residence-based regime (as previously announced)
• Capital gains tax: no change
• Business asset relief: the Business Asset Disposal Relief rate will increase from 10% to 14% from April 2025 (as previously announced)
• Capital allowances: no change
• Inheritance tax: threshold frozen until 2030 (as previously announced).

Duty rates

• Fuel duty: no change
• Alcohol duty: no change
• Vaping products duty: no change
• Tobacco duty: no change
• Air passenger duty: no change
• Stamp Duty Land Tax: cuts to Stamp Duty Land Tax will end on 31 March (as previously announced). Stamp Duty will be payable on the purchase price of properties over £125,000 from 1 April
• Energy profits levy: no change
• Soft drink industry levy: no change.

Other key changes

• National Living Wage: rises from £11.44 to £12.21 per hour in April 2025 (as previously announced)
• State pensions: 4.1% increase in April 2025 thanks to the triple lock; pension credit will also rise by 4.1% in April 2025 (as previously announced).