27 March 2025
With her plans designed to bolster the economy, reform the state, and ensure security, the message was clear: creating stability at home is now paramount.
Key Highlights from the Statement
Despite downgraded growth forecasts for 2025, with expectations halved to 1%, the Office for Budget Responsibility (OBR) has revised longer-term growth estimates upward starting from 2026. Coupled with global economic policy uncertainty on the rise, Reeves made it evident that businesses should capitalise on domestic opportunities arising from structural reforms.
While no immediate tax changes were proposed — tax reviews being reserved for autumn — the Treasury unveiled plans to intensify its crackdown on tax fraud. By increasing prosecutions by 20%, the government aims to recover an additional £1 billion annually by 2029.
The standout message? Business opportunities abound as strategic interventions target defence, construction, and technology sectors.
Opportunities for Business Growth
Defence and National Security
Geopolitical instability has underscored the need for heightened defence measures, with the government pledging £2.2 billion in additional spending for 2025-26. Businesses involved in defence supply chains, cybersecurity, and infrastructure will find avenues for expansion as emerging technologies like drones and AI-enabled systems secure a significant portion of the Ministry of Defence’s equipment budget.
Construction and Infrastructure
The government’s commitment to housing and infrastructure is set to unlock over 1.5 million homes during this Parliament, enabled by streamlined planning policies. Construction companies — from project managers to specialised trades — should gear up for increased demand. Additionally, £625 million allocated for skills development will deliver an additional 60,000 skilled workers to support industry growth.
Technology and Artificial Intelligence
Ambitions to position the UK as a leader in AI remain steadfast, with a £3.25 billion Transformation Fund driving innovation in public service delivery. Whether enhancing efficiency in areas like justice and foster care services or pioneering AI solutions, tech firms have an opportunity to align their offerings with the government’s vision for global technological leadership.
Expert Advice for Businesses
“Businesses in these sectors should monitor upcoming procurement announcements and align their capabilities with evolving priorities,” shared a company and commercial expert. Collaborating with partners and staying tender-ready could unlock potential growth.
From reviewing governance and sustainability measures to evaluating financial standing and supply chain scrutiny, preparation is key for companies seeking to secure government contracts.
For smaller enterprises, investing time in tender readiness may be necessary, while larger businesses should assess their readiness for scrutiny across all aspects of the procurement process.
As geopolitical and economic uncertainty grows, the Spring Statement’s focus on stability at home provides businesses with the opportunity to align with strategic growth areas. Whether in defence, construction, or tech, preparing for tender opportunities could be a step toward resilience and success.
Note: This article provides general information and is not intended as legal advice.
