# Spring statement reaction

By Andrew Prosser — 2026-03-03

Andrew Prosser, head of investments at InvestEngine, said: “The Chancellor wanted to make this year’s spring statement a low-key affair, avoiding headline-grabbing announcements and emphasising the need for the UK to project economic stability in an uncertain world.

“However, events in the Middle East are already showing how difficult that will be to sustain, with the escalating conflict pushing up oil prices and underlining the UK’s susceptibility to global markets.

“As a result, energy costs are back in focus today, along with what support, if any, would be offered to households and businesses.

“This will be particularly frustrating for the Chancellor given the recent fall in the energy price cap, with the developing conflict risking undermining that progress and adding renewed pressure to inflation and interest rate expectations.

“Beyond the updated economic forecasts and acknowledgement of global risks, there was nothing in the way of new measures that would directly impact people’s day-to-day finances.

“Last year’s Budget announced reforms to improve people’s financial resilience, most notably a reduction in the annual allowance for the cash component of ISAs, forming part of a broader effort to strengthen the UK’s investment culture.

“This time, however, there was no comparable update, leaving unanswered questions around how the government intends to encourage greater retail investment participation, particularly at a time when fiscal drag continues to pull more earners into higher tax bands.

“With income tax thresholds frozen until 2031, rising wages mean more individuals are paying higher and additional rates, while those earning between £100,000 and £125,140 continue to face an effective 60 per cent marginal rate as their personal allowance is withdrawn.

“Without reform, this so-called ‘tax trap’ risks further limiting people’s ability to save and invest.

“SMEs, meanwhile, remain under pressure from elevated national insurance costs and ongoing uncertainty around dividend taxation.

“Clearer long-term direction in these areas would help build confidence.

“While the Chancellor may have wanted a quiet, boring statement, the global backdrop made that tougher than expected.

“To that end, greater clarity on progress to support business and people’s personal finances would have provided some much-needed reassurance at this time of uncertainty.”

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