Gail Boag, CEO at ICAS, noted that while the statement paints a slightly improving economic picture, these short-term positives distract from the absence of a sustainable, long-term tax strategy.

She said: “Talking about boosting GDP by 5.6% by the end of this parliamentary term means little if those modest gains are swallowed up by rising tax burdens. 

“Freezing tax thresholds has become successive governments’ go-to stealth tactic to raise taxes. As wages rise with inflation while thresholds remain the same, more people are pushed into higher tax bands, reducing their take-home pay and leaving households with less to spend across the economy.”

Ms Boag highlighted that if thresholds had tracked inflation since 2021, the personal allowance would be approximately £15,550 rather than £12,570. She cautioned that this “fiscal drag” pulls middle-income earners like teachers and nurses into higher brackets, erodes trust in the system, and fails to incentivise work or productivity.

Adding to the call for long-term clarity, Susan Love, strategic engagement lead for Scotland at ACCA UK, welcomed the Chancellor’s commitment to a single annual fiscal event as a move towards simplicity and stability. However, Ms Love expressed concern regarding upcoming changes in the new tax year, including increased dividend tax rates, higher CGT, and business rates revaluations.

She noted that these factors, combined with the shift to Making Tax Digital in April and previous increases to National Insurance Contributions, offer little respite for small firms. While acknowledging the Chancellor’s steadfast vision amidst global uncertainty and risks in the Middle East, Ms Love emphasised that stronger action will be necessary by the Autumn Budget to support tangible business growth.

Matthew Amis, investment director at Aberdeen, characterised the update as a deliberate “non-event”. He observed that while fiscal headroom and gilt issuance might appear slightly higher upon close inspection, there was nothing in the specific detail of the statement to drive gilt yields. Mr Amis concluded that the Chancellor’s Spring Statement remains secondary to the primary economic drivers currently at play, asserting that geopolitics and the surge in energy prices are the “only game in town” and remain unaffected by this latest fiscal update.