Spring Statement 2026 UK: What to Expect for Your Taxes
The Spring Statement is coming in March 2026. While not a full Budget, it can still announce tax changes. Here's what to watch for and how it might affect your finances.
Last Updated: January 2026 | Looking ahead: March 2026
The Spring Statement (sometimes called the Spring Budget or Spring Forecast) is the Chancellor's mid-year economic update. While typically smaller than the Autumn Budget, it can still announce significant tax policy changes.
Here's what we know, what we expect, and how to prepare.
When Is the Spring Statement 2026?
The Spring Statement is expected in late March 2026, likely around the 19th-26th. The exact date will be confirmed by HM Treasury closer to the time.
Key dates for your diary:
- Spring Statement: Late March 2026
- New tax year starts: 6 April 2026
- Any changes effective: Usually 6 April 2026 onwards
What Is the Spring Statement?
The Spring Statement is the government's response to the Office for Budget Responsibility (OBR) economic forecast. It's an opportunity for the Chancellor to:
- Update economic projections
- Announce minor tax changes
- Signal policy direction
- Respond to economic conditions
How it differs from the Autumn Budget:
- Typically smaller in scope
- Fewer major tax announcements
- More focused on economic outlook
- Changes usually less dramatic
However, in recent years, Spring Statements have occasionally included significant tax measures—so it pays to be prepared.
What Could Change in Spring 2026?
Based on current economic conditions and policy signals, here are areas to watch:
Likely to Be Discussed
1. Frozen Tax Thresholds
The Personal Allowance (£12,570) and higher rate threshold (£50,270) have been frozen since 2021 and are scheduled to remain frozen until 2028.
- Watch for: Any extension or end to the freeze
- Impact: Frozen thresholds mean more people pay higher rates as wages rise
- Our view: Unlikely to change, but any movement here would be significant
Read about frozen thresholds and fiscal drag
2. National Insurance Rates
After the Autumn Budget 2024 changes (employer NI up to 15%, threshold down to £5,000):
- Watch for: Any adjustments to employee NI rates
- Impact: Direct effect on take-home pay
- Our view: Employee rates likely stable; employer may get Employment Allowance updates
3. Fuel Duty
The "temporary" 5p fuel duty cut has been extended multiple times:
- Watch for: Extension or end of the freeze
- Impact: Affects transport costs, inflation
- Our view: Political pressure likely means continued freeze
Possible Announcements
4. ISA Updates
The government has been reviewing the ISA system:
- Watch for: British ISA implementation or ISA simplification
- Impact: New savings vehicles or limit changes
- Our view: Possible minor changes to encourage UK investment
5. Pension Tax Relief
Always under review at fiscal events:
- Watch for: Changes to relief rates or allowances
- Impact: Could affect higher earners significantly
- Our view: Major changes unlikely mid-cycle, but watch for signals
6. Business Rates
Often adjusted at fiscal events:
- Watch for: Relief extensions for retail/hospitality
- Impact: Indirect—affects prices and employment
- Our view: Likely some sector support
Unlikely but Possible
7. Income Tax Rates
Major rate changes are rare at Spring Statements:
- Watch for: Signals for Autumn Budget
- Impact: Would be significant if announced
- Our view: Very unlikely without major economic shift
How Past Spring Statements Affected Taxes
| Year | Key Announcement | Impact |
|---|---|---|
| 2024 | NI cut from 10% to 8% | £450 annual saving on £35k salary |
| 2023 | Fuel duty freeze extension | 5p/litre saving continued |
| 2022 | NI threshold raised to £12,570 | Aligned with Personal Allowance |
| 2021 | Super-deduction announced | Business investment boost |
As you can see, while smaller than Autumn Budgets, Spring Statements can deliver meaningful changes.
How to Prepare
Before the Statement
1. Know Your Current Position
Use our calculator to understand your current take-home pay:
- Calculate your salary now
- Note your tax band and marginal rate
- Check if you're near any thresholds
2. Review Your Pension Strategy
If changes to pension relief are announced:
- Consider making contributions before changes take effect
- Review your current contribution level
- Ensure you're capturing any employer match
3. Check Your ISA Allowance
ISA changes often take effect from the new tax year:
- Have you used your £20,000 allowance this year?
- Consider topping up before 5 April 2026
- Review your investment ISA vs. cash ISA split
After the Statement
1. Assess the Impact
We'll update our calculator and publish analysis as soon as changes are announced. Check back for:
- Updated tax calculations
- Detailed breakdowns of any changes
- What it means for your specific situation
2. Adjust Your Plans
Any changes announced typically take effect from 6 April 2026:
- Review your budget
- Update your salary sacrifice arrangements
- Reconsider any major financial decisions
What We'll Cover
After the Spring Statement, PayeTax will provide:
- Immediate analysis: Same-day breakdown of key changes
- Calculator updates: Reflect any new rates or thresholds
- Detailed guides: Deep-dive into specific changes
- Scenario comparisons: Before/after comparisons
Sign up for our newsletter (coming soon) or check back after the announcement.
Spring Statement vs. Autumn Budget
| Feature | Spring Statement | Autumn Budget |
|---|---|---|
| Timing | March | October/November |
| Scope | Narrower | Comprehensive |
| Tax changes | Minor/none | Major possible |
| Spending | Updates only | Full review |
| OBR forecast | Response | Basis |
For major tax planning, the Autumn Budget remains the key event. But the Spring Statement can still surprise.
Frequently Asked Questions
When is the UK Spring Statement 2026?
The Spring Statement 2026 is expected in late March 2026, likely between 19-26 March. The exact date will be confirmed by HM Treasury.
Will taxes change in the Spring Statement?
Possibly. While Spring Statements are typically smaller than Autumn Budgets, they can include tax changes. Recent examples include NI rate cuts and threshold changes.
Does the Spring Statement affect the new tax year?
Yes. Any changes announced are usually effective from 6 April 2026, the start of the new tax year. Some measures may take effect immediately.
How can I prepare for potential tax changes?
Know your current tax position, ensure you've used available allowances (ISA, pension), and stay informed. Major personal finance decisions can wait until after the announcement if you're concerned about changes.
Where can I find Spring Statement updates?
We'll publish analysis on this blog as soon as the Spring Statement is delivered. The official announcements will be at gov.uk and in the Chancellor's speech to Parliament.
Calculate Your Current Position
Before the Spring Statement, understand where you stand now. Our calculator shows your current take-home pay based on 2025-26 rates:
After the Spring Statement, we'll update our calculator with any changes and publish detailed analysis.
Related Guides
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