Spring Forecast 2026 – Stability Over Change for Contractors

On 3 March 2026, Chancellor Rachel Reeves delivered her second Spring Statement, amidst significant global and domestic economic pressures. This year, the statement functioned more as a “Spring Forecast”, focusing on reporting economic performance rather than introducing major policy changes. The shift to one major fiscal event per year is intended to give businesses and families greater certainty and stability.

Below is a summary of the key points our clients should be aware of following the Spring Statement.

IR35 and contracting rules remain unchanged

No employment status review or policy tweaks were announced. Meaning Stonebridge and our clients should continue operating under the current framework.

Economic outlook

The Office for Budget Responsibility (OBR) predicts modest GDP growth: 1.1% in 2026, 1.6% in 2027–28, and 1.5% in 2029–30. Inflation is easing but remains above target at 3%.

Business environment

Borrowing has improved and fiscal headroom increased slightly, but cautious client spending and project delays may continue due to global uncertainty and energy price spikes.

Support for AI and entrepreneurs

The Chancellor highlighted opportunities for business owners on their own account, though broader contractor relief was not addressed.

Planning opportunity

With tax and NI rates confirmed for 2026/27, directors can use this quiet period to review dividend/salary strategies ahead of the new tax year.

While the statement reinforced a narrative of stability and long-term planning, many in the contracting community see it as a missed opportunity for reform. At Stonebridge Contracting, we encourage our clients to focus on operational efficiency, remuneration planning, and risk management, to navigate steady but challenging conditions effectively.