How to engage with your finances
This guest blog was written by Chris Budd, who wrote the original Financial Wellbeing Book as well as The Four Cornerstones of Financial Wellbeing. He founded the Institute for Financial Wellbeing and has written more than 130 episodes of the Financial Wellbeing Podcast. Read More
Your Spring Statement update – the key news from the chancellor’s speech
Just over three months after her lengthy Autumn Budget, chancellor Rachel Reeves has addressed the House of Commons and delivered the government’s 2026 Spring Statement.
Ahead of the Statement, Reeves reinforced the government’s commitment to “one fiscal event, one Budget, a year”. So, it will come as a relief to many, including business owners, that the Spring Statement included no additional tax-raising measures. Furthermore, no changes to pensions or Individual Savings Accounts (ISAs) were announced.
Reeves also said that household disposable income is set to grow at twice the rate that was forecast in the Autumn Budget – leaving the average person £1,000 better off each year by the next election.
That being said, previous announcements, including changes to the tax regime, remain in place, and may affect personal finances and business owners in 2026/27 and beyond.
Reeves gave an overview of the Office for Budget Responsibility’s (OBR) economic forecast for the years to come. Notably, the OBR’s forecasts and the Statement as a whole made no mention of the potential economic impact of the unfolding situation in the Middle East, which may contribute to increased oil and gas prices that could prove inflationary and cause stock market volatility.
The chancellor confirmed the changes announced in the 2024 and 2025 Budgets
In an effort to reduce speculation and prevent a chop-and-change approach, the chancellor confirmed that key tax measures, announced in the Autumn Budgets of 2024 and 2025, will remain in place.
Among the key changes that have been reconfirmed and will affect personal finances are:
- Inheritance Tax (IHT) will be levied on most unused pension benefits from April 2027. It’s estimated that this change will result in an additional 10,500 estates being liable for IHT in 2027/28. This will contribute to a predicted rise in IHT receipts to £15 billion by 2030.
- Tax on income earned from property will rise by two percentage points from April 2027, increasing tax liability for landlords.
- There will also be a two percentage point increase in the basic and higher rates of Dividend Tax from April 2026, which may affect business owners and investors.
- Key tax thresholds, including those for Income Tax and the IHT nil-rate bands, will remain frozen until April 2031.
The lack of any tax-raising measures in the Spring Statement will be welcome news for many people.
The Office for Budget Responsibility has updated its forecasts for GDP growth, inflation, and house prices
The OBR has updated its real-terms GDP forecast every year between 2026 and 2029 when compared to the estimates it made in the 2025 Autumn Budget. The organisation now expects the economy to grow by:
- 2026 – 1.1% (a decrease of 0.3%)
- 2027 – 1.6% (unchanged)
- 2028 – 1.6% (an increase of 0.1%)
- 2029 – 1.5% (unchanged)
The OBR expects inflation to be at or around the Bank of England’s (BoE) 2% target over the next five years. Inflation easing would improve household spending power, which, in turn, could provide a boost for the economy and businesses. Indeed, real household disposable income is expected to grow by between 0.6% and 0.9% each year until 2030.
The BoE has already cut its base interest rate several times since the current government formed in July 2024, as inflationary pressures eased. If the OBR’s forecast is accurate, the BoE is likely to make additional cuts, which would reduce the cost of borrowing for households and businesses.
The OBR expects unemployment to rise from 4.75% in 2025 to a peak of 5.33% in 2026, driven by weaker demand for labour. After peaking in 2026, unemployment is expected to fall to 4.1% in 2030.
It also forecasts that house prices will rise by between 2.4% and 2.9% each year between 2026 and 2030.
The government reinforced its ongoing commitment to two key fiscal rules
In her speech, the chancellor confirmed the two fiscal rules set out in the Budget:
- Stability rule – Not to borrow money to fund day-to-day public spending by the end of this parliament (2029/30).
- Investment rule – To reduce government debt as a share of national income by 2029/30.
Addressing the stability rule first, although the cost of borrowing has risen during this period of heightened uncertainty, the chancellor vowed that the steps taken in the Statement will restore its headroom.
Turning next to the investment rule, Reeves also stated that this commitment will be met two years early, with net financial debt predicted to be 82.9% of GDP in 2025/26.
4 key Spring Statement measures
1. Boosting defence spending
At a time of growing worldwide tension, the chancellor announced increases to defence spending, aimed at making the UK a “defence industrial superpower”. Defence spending is set to reach 3.5% of GDP by 2035.
Defence innovation will include harnessing AI and drones, creating employment opportunities for engineers in the devolved nations, while a previously announced Defence Growth Board is also being created to support £400 million for defence innovation.
2. Tackling youth unemployment
The chancellor reconfirmed her commitment to getting those in Britain who can work into work. She stated that 1 in 8 young people is currently not in employment, education, or training.
The chancellor confirmed that reforms to the welfare system will produce welfare savings of £4.8 billion between 2026 and the end of the forecast period (2029/30).
3. Increasing property revenue
Previously announced property planning reforms will go ahead.
The reforms are expected to increase real levels of GDP by 0.2%, the equivalent of £6.8 billion for the economy, by 2029/30. Over 10 years, this is expected to increase to 0.4% of GDP (£15 billion). Reeves said this represents the biggest growth forecast for a policy with no fiscal cost.
4. Making government more efficient
The abolition of NHS England was announced back in March 2025 as part of wider efforts to increase NHS efficiency and productivity, and to cut spending. These measures will also include reducing costly agency outsourcing.
More widely, Reeves confirmed the £3.25 billion of investment in a new “transformation fund” that will drive modernisation across the public sector through digital reform and the adoption of AI. It’s hoped that these changes will result in a “leaner” and more efficient public sector.
After announcing a raft of changes in the Autumn Budget, the Spring Statement acts as a fiscal pitstop, upholding the government’s commitment to one significant fiscal event a year.
Please note
All information is from the chancellor’s speech, the gov.uk website, the Spring Statement press release and the Autumn Budget documents published by HM Treasury.
The content of this Spring Statement summary is intended for general information purposes only. The content should not be relied upon in its entirety and shall not be deemed to be or constitute advice.
While we believe this interpretation to be correct, it cannot be guaranteed, and we cannot accept any responsibility for any action taken or refrained from being taken as a result of the information contained within this summary. Please obtain professional advice before entering into or altering any new arrangement.
The Financial Conduct Authority does not regulate tax planning.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Fraudsters use crypto hype to scam investors out of more than £500,000 a day
Cryptoassets are not regulated financial products so please be aware that trading them carries a considerable amount of risk for your capital. Cryptocurrencies are also not covered by existing consumer protection laws and are not suitable for the majority of investors.
Cryptocurrency has become a common investment for people in recent years. Indeed, more people are choosing to invest in digital currencies such as Bitcoin and Ethereum.
The Financial Conduct Authority (16 December 2025) reports that roughly 8% of the UK’s population were cryptoasset owners in 2025.
However, with this rise in crypto interest comes more risk. Scammers have been developing increasingly sophisticated ways to exploit a lack of familiarity with how cryptocurrencies work.
According to the Guardian (24 October 2025), the amount lost to investment scams in the UK increased by 55% in 2025, with fake cryptocurrency schemes topping the list. Worryingly, losses to investment scams reached £97.7 million during the first six months of 2025 – more than £500,000 each day.
It’s vital to remember that cryptocurrencies are risky and tend to be volatile, meaning they aren’t suitable for everyone. Still, if you’re considering investing in cryptocurrency, understanding the difference between a scam and a real opportunity could protect your wealth.
Here are six of the most common ways fraudsters might take advantage of the hype around crypto and attempt to lure you in.
1. Enticing you with social media adverts and fake endorsements
Social media has become one of the main tools fraudsters will use to commit cryptocurrency crimes.
Scammers will often use professional-looking adverts on platforms such as Instagram or YouTube to promote investment opportunities.
Some adverts feature fake celebrity endorsements, or even “deepfakes” – which are AI-generated videos that impersonate real people – to show well-known figures supporting a cryptocurrency.
These clips are usually very convincing, and even experienced crypto investors can be fooled.
In reality, the celebrities in the videos often have absolutely no involvement in any investment opportunities related to the currency. Regardless, these deepfakes often succeed in instilling trust and getting social media users to hand over personal details.
Fraudsters also use social media adverts to entice their victims. With them, they often downplay the risks or make it seem like everyone is investing in crypto.
2. Building confidence with small early “profits”
Scammers will also attempt to persuade you to make smaller initial investments to draw you in.
Scammers won’t always ask you for a large investment straight away. Instead, they could attempt to gain your trust by suggesting smaller investments to begin with.
Yet, once you’ve done so, they will then try to show that you’ve already turned a “profit”.
Of course, watching your investments rise in value can make any scam seem authentic. You may even decide to contribute more to the scam.
Then, when you attempt to withdraw funds, scammers might discourage you by imposing additional fees. Or, in the worst-case scenario, disappear altogether with your money.
3. Creating a false sense of urgency
Many scams, including those involving cryptocurrency, rely on pressuring you to act quickly.
You may be told that an opportunity will be available for only a short period, or that the market is about to rise significantly. This could prompt you to act now to secure any returns.
However, these pressure tactics are designed to prevent you from stopping, thinking, or even seeking professional advice.
You should remember that genuine investments typically don’t require instant decisions, and being rushed is usually a red flag that you’re walking into a scam.
4. Using overly complex explanations
It’s worth noting that cryptocurrency is new, highly technical, and often unfamiliar to even the most experienced investor. Unfortunately, scammers can use this to their advantage.
Scammers may use confusing jargon, complex charts, or technical explanations to discourage you from asking questions, all while creating the impression that they’re experts.
If you don’t fully understand an investment, it’s essential to pause and think. Legitimate providers should always be able to explain how everything works and the risks involved.
5. Being asked to keep an investment a secret
You may find that fraudsters will tell you not to discuss any investment opportunities with your friends, family, or advisers.
They may even warn you that sharing any details could affect your returns, or that other people won’t understand the opportunity.
This makes it far easier for scammers to manipulate any future decisions you might make, and harder for your support network to raise any concerns.
6. Using fake cryptocurrency wallets or websites
Fraudsters often create fake wallets or websites that might seem like legitimate platforms on the surface.
You could be directed to download an unusual mobile app or visit a website that seems professional.
In reality, these fake platforms can steal your login details, giving scammers access to your financial information.
Then, with this information, the fraudsters could compromise other assets, such as your bank or investment accounts.
Scammers might also offer seemingly legitimate tools you can use for tracking or trading digital currency, only to misappropriate any funds you transfer to them.
As such, it’s important to carefully check any URLs and verify any downloads with the proper provider.
Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Cryptoassets are not regulated financial products so please be aware that trading them carries a considerable amount of risk for your capital. Cryptocurrencies are also not covered by existing consumer protection laws and are not suitable for the majority of investors.
What you can learn from Michael Sheen about spending with purpose
Spending money with purpose can improve your wellbeing. With International Day of Happiness taking place on 20 March 2026, now is the perfect time to think about how you want to use your wealth in a meaningful way, taking inspiration from renowned actor Michael Sheen.
Often, people think about financial planning as a way to increase their wealth. However, that’s not always the case. Financial planning is about using your money to live the life you want now and in the future.
In some cases, this might involve a strategy to increase the value of your assets. For example, if you’re planning for retirement, you might invest through a pension with the goal of being financially secure when you’re ready to give up work. However, in other circumstances, your financial plan might involve using your savings because doing so would support your wellbeing.
Michael Sheen used his money to launch a new national theatre for Wales
You might recognise Michael Sheen for playing Tony Blair in The Queen, the angel Aziraphale in Good Omens, or other memorable roles portrayed on stage and screen.
Respected for his versatility, Sheen is a sought-after actor, and if his goal was to accumulate wealth, he’d have the opportunity to pursue this. Yet, in 2021, he announced he would be a “not-for-profit actor” who would use the money he earns to support passion projects.
One of these projects was launching a new national theatre for Wales.
Sheen first became involved in 2025 after the old theatre closed following funding cuts. At the start of 2026, the theatre was preparing its first full production, with Sheen also starring in the play.
While funding is undoubtedly important for the new Welsh National Theatre, when asked by the BBC (13 January 2026) what he wants to achieve, Sheen said his aims included “pathways to develop young talent”, “productions that are bold and ambitious”, and a “canon of Welsh work”.
While this project might not have been the best way to increase wealth for Sheen, it may have improved wellbeing and created a sense of purpose.
The benefits of spending with purpose
If you’re accustomed to spending impulsively or focusing on wealth creation, spending with purpose can take some getting used to, but there are benefits to shifting your mindset.
First, it’s an approach that can make your life more meaningful.
Making financial decisions based on your interests and passions, rather than simply increasing wealth, can lead to a more fulfilling life that provides a strong purpose.
The outcome of choosing to make financial decisions based on purpose will be different for everyone. Some may want to dedicate a portion of their income to supporting charitable causes that are important to them. Others might want to explore the option of reducing working hours, so they have the time to focus on a passion project.
What’s important is that the decisions you make reflect the life you want to lead.
Second, placing meaning at the centre of your financial decisions can provide extra motivation to stick to the plan you set out. It’s an approach that could keep you on track.
Finally, spending with purpose could help you balance short- and long-term goals.
When you’re focused on simply increasing your wealth, you’re often doing so for the future, and you might miss out on opportunities that you’d enjoy and can afford now. Shifting your focus to wellbeing could help you strike a balance between living your life now and long-term security that suits you.
A financial plan could give you the confidence to pursue your passions
Creating a financial plan that’s tailored to you can give you the confidence to pursue your passion projects.
While you might not be funding a new national theatre, you may still worry about how supporting causes that are important to you or pursuing different opportunities could affect your long-term financial security.
As your financial advisers, we can help you assess the impact of your decisions, so you can understand what’s right for you.
If you’d like to talk about your passions and how you may incorporate them into your financial plan, please get in touch.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
