Spring Statement 2026: What Actually Changed

Quick answer

The Spring Statement 2026 delivered by the Chancellor on 26 March 2026 was — as Spring Statements typically are — a fiscal update rather than a tax-changing event. The headlines:

• OBR growth forecasts revised slightly upward for 2026/27.
• Borrowing path broadly maintained.
• No new income tax, NI or dividend rate changes.
• Confirmation that previously-announced reforms (MTD ITSA phasing, BADR/APR caps, pension IHT inclusion) remain on schedule.

The Spring Statement is not a Budget. Formal tax-rate or threshold changes legally require Finance Bill legislation — typically delivered alongside Autumn Budgets (full Budget) or Spring Budgets (occasionally). 2026 had its Spring Budget on 4 March 2026 (covered in our 5-part series) — so this Spring Statement on 26 March is essentially a fortnight-later follow-up update.

What the OBR forecasts changed

The Office for Budget Responsibility (OBR) published its March 2026 Economic and Fiscal Outlook alongside the Spring Statement. Key updates vs November 2025:

The slightly faster growth + slightly lower inflation pairing reflects continued moderate economic recovery. Borrowing is up slightly because of higher debt-service costs (gilt yields stayed elevated through Q1).

The OBR notes the 5-year fiscal headroom has narrowed from £9.9bn (November) to £7.2bn (March) — meaning fewer giveaways available at the Autumn Budget without breaking the fiscal rules.

What got confirmed but not changed

Several previously-announced items got reconfirmation status:

Making Tax Digital for ITSA — phasing

• From April 2026: sole traders / landlords with qualifying income > £50,000.
• From April 2027: threshold drops to £30,000.
• From April 2028: threshold drops to £20,000 (still scheduled).

See our SA series Part 7 for full detail.

Business Asset Disposal Relief / Investors' Relief

• BADR rate rises from 14% to 18% from 6 April 2026 (i.e. now in 2026/27 tax year).
• Investors' Relief lifetime allowance reduced from £10m to £1m from 6 April 2026.
• Business Relief on AIM-listed shares reduces from 100% to 50% from 6 April 2026.
• Agricultural Property Relief / Business Relief combined cap of £1m at 100% relief from 6 April 2026.

Pension IHT change

• From 6 April 2027, pension pots will be included in IHT estates.
• Consultation on the operational mechanics closed in February 2026; final policy paper expected July 2026.
• See our IHT post for what to do before then.

British ISA — consultation extended

The proposed "British ISA" (additional £5,000 allowance for UK-listed equities) — originally proposed in Spring Budget 2024, then put under formal consultation in early 2025 — has had its consultation period extended to summer 2026. The government did not yet commit to implementing it.

Many in the industry view this as the policy being politely discontinued — no implementation timeline given, no draft legislation, and consultation respondents largely lukewarm.

What was new in Spring Statement 2026

A handful of small administrative items:

Apprenticeship Levy adjustment

A minor change to how the Apprenticeship Levy (paid by large employers) can be transferred between employers — allowing up to 50% (was 25%) of unused funds to be transferred to smaller employers in the same supply chain.

Marginal impact on most workers but useful for skills funding.

Energy efficiency grants extension

The Boiler Upgrade Scheme (BUS) — £7,500 grant for heat pump installations — extended through to March 2028. Funding pot increased by £400m.

Disability benefit reform timetable

Confirmation that the PIP reform consultation outcomes will be published in summer 2026 with proposed legislation to follow. No immediate cash impact for current claimants.

Tax administration "simplification" package

Several small measures aimed at reducing HMRC compliance burden:

• Faster HMRC repayments via the HMRC app (going live July 2026).
• Improved tax code dispute process (more automated, less letter-based).
• Pre-completed income data for non-Self-Assessment refunds (auto-claim experience).

None of these change tax liabilities — they speed up administration.

What it means for you

If you're employed under PAYE

Almost nothing changes. Your 2026/27 tax position is the same as Spring Budget 2026 confirmed:

• Personal Allowance £12,570 (frozen)
• Income tax bands frozen
• NI rates unchanged

If you're a business owner planning to exit

BADR rises from 14% to 18% on 6 April 2026. If you're considering selling your business and the sale is feasible before that date, the timing matters:

• £1m gain sold before 6 April 2026: BADR 14% = £140,000 tax.
• £1m gain sold 6 April 2026+: BADR 18% = £180,000 tax.
• Difference: £40,000.

If your sale is months away, talk to your accountant about whether timing can be accelerated.

If you hold AIM shares for IHT planning

The 100% Business Relief on AIM shares drops to 50% from 6 April 2026. Many IHT-planning portfolios specifically use AIM listing to get 100% relief.

Action before 6 April 2026: review holdings and consider whether the new 50% relief still makes AIM a sensible IHT vehicle vs alternatives (trusts, pension contributions, etc.).

If you have a pension above £325,000

The 6 April 2027 pension IHT change means review of estate planning is overdue. The "spend pension first" approach is now mathematically optimal for many — see our IHT explainer.

If you're saving in an ISA

The British ISA situation suggests no extra allowance is coming any time soon. The £20,000 ISA allowance remains the only headline.

When the next major announcements happen

2026 fiscal calendar going forward:

• July 2026: Pension IHT consultation outcome paper.
• Autumn 2026 (~25 November): Autumn Budget 2026 — this is when major tax-rate or threshold changes would be announced (income tax, NI, dividend rates, CGT, IHT, etc.).
• Spring 2027 (March): Spring Statement 2027 — typically another fiscal update.
• Spring 2027: Spring Budget 2027 (if scheduled).

The Autumn Budget 2026 is the real next inflection point. With fiscal headroom narrowed, the Chancellor faces choices:

1. Raise taxes (income tax thresholds, dividend rates, CGT, IHT) to widen headroom.
2. Cut spending plans (politically difficult).
3. Adjust fiscal rules.

Market consensus and most independent analyses expect at least some revenue-raising measures in Autumn 2026. Watch this space.

What's NOT in the Spring Statement

Several pre-event speculations didn't materialise:

• No cut to income tax rates (20%/40%/45%).
• No change to personal allowance.
• No reduction in NI rates.
• No restoration of the dividend allowance above £500.
• No increase in the CGT exemption above £3,000.
• No Stamp Duty Land Tax changes.

The thresholds remain in their post-April 2025 positions and the freezes continue.

Try the numbers

For your 2026/27 take-home pay:

Sources

• HM Treasury: Spring Statement 2026 (gov.uk)
• OBR: Economic and Fiscal Outlook, March 2026
• HMRC: Tax administration measures (March 2026 update)
• IFS / Resolution Foundation post-Spring-Statement analysis