James Pinchbeck, partner at Streets Chartered Accountants, reflects on the Spring Statement. In delivering her first Spring Statement, Chancellor Rachel Reeves made it clear that this government intends to follow the principle of a single annual Budget, with major tax changes reserved for the Autumn. The Spring Statement, instead, is positioned as a fiscal checkpoint, a chance to update the nation on the economic outlook and to adjust financial levers as needed. For many businesses and individuals, the most immediate takeaway will be relief in that there were no further tax increases. That said, there was also no reversal of previous tax hikes, nor any uplifting announcements such as increases to the personal allowance or adjustments to frozen tax thresholds. Those hoping for fiscal giveaways will have found little to cheer about. As anticipated, the Chancellor’s focus was on tightening public spending. With the UK economic growth forecast for 2025 revised downward from 2% to just 1%, the pressure is on to rebalance the books. Lower than expected tax revenues and rising borrowing costs have left the Treasury with less fiscal headroom, prompting action. The Chancellor cited global geopolitical tensions and instability as major headwinds, but much of the UK’s stagnation has been homegrown with a combination of suppressed consumer confidence and cautious business investment. Households continue to grapple with the cost-of-living crisis, while employers face increased staffing costs, notably from the rise in National Insurance contributions from 6th April. Public sector reform, transformation or austerity 2.0? A key announcement was the creation of a £3.25bn Public Sector Transformation Fund, aimed at shrinking the size of the state and boosting productivity through AI and digital innovation. This includes structural changes such as the dissolution of NHS England, in an effort to cut costs and improve decision-making. There will also be further tightening of welfare budgets, with cuts to Universal Credit and other support mechanisms flagged as part of the savings drive. A defence led growth strategy? Perhaps the most headline grabbing shift is the government’s framing of defence spending as an economic growth strategy. With £400m earmarked for defence innovation, particularly in AI and drone technology and a commitment to increasing defence investment as a percentage of GDP, the Chancellor declared her ambition to make the UK a “defence industrial superpower.” To complement this, capital spending commitments will continue with a £2bn increase, alongside a renewed push to meet housing targets and accelerate homebuilding. Whether this marks a bold new direction for economic strategy or a reactive shift to global instability remains to be seen. What’s clear is that growth is now expected to come from defence procurement and infrastructure investment, rather than tax cuts or consumer led stimulus. As ever, the effectiveness of this strategy will depend not just on the vision, but the execution. Businesses, investors and households alike will be watching closely. For the devil in the detail and tax planning advice for 2025/26, including managing the increase in employer’s national insurance, there is still time to book for Streets Chartered Accountants’ post Spring Statement webinar which takes place from 11am until 12noon on Thursday 27^th March. Watch live or on catch up! Register to join live and/or to receive a post broadcast recording to watch on catch up. https://www.streetsweb.co.uk/about/events/the-spring-statement-2025-what-will-it-mean-for-you/

Yorkshire-based Warrendale Wagyu has secured a £320 million, five-year contract with Aldi, making the supermarket the UK’s largest retailer of British wagyu steaks. Once the nationwide rollout is complete later this year, Aldi will sell 2.5 million wagyu steaks annually.

Warrendale Wagyu, a family-owned business, has been supplying Aldi since 2020. The partnership provides long-term financial stability for the company and its network of 800 British farmers. The business uses Fullblood Wagyu genetics crossed with dairy breeds in a grass-based system, offering a sustainable solution for surplus dairy calves.

Aldi now has the UK’s most extensive range of British wagyu products, including award-winning steaks and burgers. Warrendale Wagyu was recognised in 2024 with a King’s Award for Innovation for supporting British dairy and beef farmers.

Anglian Water has signed a new three-year agreement with emergency water supplier Water Direct to enhance rapid-response water deliveries across the East of England. The deal ensures up to 20,000 emergency water deliveries per year for households on Anglian Water’s Priority Services Register (PSR), which supports vulnerable customers during supply disruptions.

The partnership, which dates back to 2008, increases Anglian Water’s reserves in Water Direct’s Nationwide Bottled Water Bank (NWBW) for faster emergency response. Water Direct has committed to delivering water to at least 2,000 households within 24 hours when required.

The agreement aligns with regulatory changes expected to expand the number of customers eligible for PSR support by up to 40%. By outsourcing emergency deliveries, Anglian Water can reallocate internal resources to focus on resolving supply issues, improving operational efficiency.

Water Direct is also developing a technology platform to enhance real-time tracking, customer data verification, and delivery management, ensuring more efficient and transparent emergency water distribution.