The Spring Statement 2025 landed this week, and, let’s be honest, it was light on surprises. For small business owners, the headline is simple: there are no new tax rises, but the challenges facing the economy are still very real.
We’re a founder-led firm, and just like you, we’re running a business in uncertain times. We know the pressures of hiring, managing costs, and planning ahead when the economy feels like it’s stuck in neutral. So, we’re not just speaking as accountants. We’re speaking as people who are in it with you.
The Office for Budget Responsibility (OBR) has halved growth forecasts for 2025 from 2% to just 1%. Inflation is falling slowly, but uncertainty across global markets and rising borrowing costs still make life difficult for SMEs.
So, what does this mean for your business?
1. Growth is slow, but don’t panic.
Slower economic growth often leads to reduced consumer confidence. That means people may hold off on buying from you, especially if you sell directly to customers. It’s more important than ever to keep an eye on your numbers and watch for signs of a dip in revenue.
What to do:
- Tighten up cash flow forecasting.
- Monitor customer behaviour closely – has buying slowed down?
- Revisit your financial reports regularly, not just at year-end.
- Review your pricing and profit margins – are they still working for you?
2. Expect HMRC to crack down.
The government has committed £1bn to help HMRC target tax fraud and improve compliance. That means more checks, more letters, and more pressure to get things right.
We’ve already seen an increase in compliance letters to clients across the country. R&D claims, VAT returns, personal tax nothing is off limits.
What to do:
- Keep clear, accurate records (no more shoeboxes).
- Make sure all expenses are properly documented and justified.
- If you’re making R&D claims, get them reviewed by someone who knows what they’re doing.
3. Planning matters more than promises.
There was a lot of talk about big investments, defence spending, and housebuilding. But the reality for SMEs is that many of these plans are long-term and light on detail. Waiting for government support isn’t a strategy.
What to do:
- Build a business that can adapt, not one that waits.
- Focus on what you can control: performance, clients, and cash.
- Use the data you already have to guide smart decisions.
4. Now’s the time to be proactive.
Economic headlines may be flat, but your business doesn’t have to be. The strongest firms plan ahead, make bold decisions, and stay agile. If we’ve learnt anything over the past few years, it’s that those who stay on the front foot come out stronger.
We’re already supporting clients with:
- Cash flow forecasting
- Planning for employment costs
- Preparing for the new tax year
- Reviewing spending to stay lean and profitable
If you’re feeling unsure what the Spring Statement means for your business, let’s talk.
We’re not just here to file your tax return, we’re here to help you make sense of the big picture.
Joseph & Emilio
Co-Founders, Heaton Vences