Instead, the widely anticipated statement on Wednesday [26 March 2025] met a mix of “No, but” and “Yes, but” reactions from across workforce observers, who commented on facets ranging from welfare and benefits cuts to increased investment in defence spending and construction skills. 

Responding to the mixed reaction received by the Spring Statement, Tania Bowers, global public policy director at the Association of Professional Staffing Companies (APSCo), commented: “While there may be some less popular elements in the Chancellor’s speech, it is encouraging to see that creating quality jobs is front and centre in the government’s plans for change. The focus on funnelling money into getting more people who can work into employment is also promising for the labour market, though how much that will impact professional skills in the immediate future remains to be seen.”

Key provisions of the statement included:

• A further £13bn of capital investment over the Parliament to go further on growth, on top of the £100bn uplift announced at the Autumn Budget. This is designed to deliver projects needed to catalyse private investment, boost growth and drive forward the UK’s modern industrial strategy – unlocking the potential of the Oxford-Cambridge Growth Corridor, which could add up to £78bn to the UK economy by 2035.
• Over this Parliament, the funding of a £625m package to boost skills in the construction sector, which aims to provide up to 60,000 more skilled construction workers for home building and infrastructure projects. As part of this, the government is providing further support to scale up existing construction skills pathway over this Parliament through £100m for 35,000 additional training places in construction-focused Skills Bootcamps, supporting trainees, ‘returners’ and existing employees. Building on a £40m investment in the new Growth and Skills Levy at Autumn Budget 2024, the government is also providing a further £40m to support up to 10,000 more young people to access new construction Foundation Apprenticeships. A further £100m aims to deliver 10 Technical Excellence Colleges specialising in construction across every region in England, and £165m to increase funding for training providers delivering construction courses for 16-19-year-olds and adults.
• The government is also providing £100m, alongside a £32m contribution from the Construction Industry Training Board to deliver up to 40,000 industry placements in construction each year.
• £1bn in extra funding for tailored employment support.
• Additional investment in tax compliance was announced with 500 more tax compliance staff being recruited to HM Revenue & Customs on top of the 5,000 recruits announced in October’s Autumn Statement.

Neil Carberry, CEO of the Recruitment & Employment Confederation, said: “The government’s overall message is more positive, and sectors such as housing and defence will be heartened but we need more from the government on the broader industrial strategy. Progress on reforming the Apprenticeship Levy, easing bureaucracy for employers and proper partnership working is what is needed now to underpin the labour market and unleash growth across all sectors.”

On the Chancellor’s comments about costly agency staff in the NHS, Carberry went on to say: “The narrative about costly agencies is back to front. NHS Trusts are struggling to find contingent staff due to a nine-year freeze in most pay rates for affordable, on-framework agency work. This has driven trusts to expensive provisions that could be avoided by working in partnership with agencies, unions and trusts to design a system that really works. 

“With the National Insurance rise next month, agencies are forced to absorb the cost due to the government's refusal to pay its own tax increase. This attempt to save pennies will ultimately cost pounds, as Trusts will increasingly rely on non-pay-capped off-framework providers or expensive NHS bank solutions. Agencies, which have been unfairly blamed and belittled by the government, continue to provide vital 21st-century staffing solutions at a time when the NHS cannot fill its vacancies. Agencies want to remain an integral part of the NHS as respected partners not as punchbags. Without them it is patients that will lose out.”

And from other commentators:

• Rebecca Florisson, principal analyst, Work Foundation at Lancaster University: “The Chancellor pledged to restore stability in part by making cuts to welfare, but in doing so the government is likely to inject instability into the lives of up to 3.2m households with a disabled person as a result of this package… The DWP [Department for Work and Pensions] estimated that an extra 250,000 people, including 50,000 children, will be in relative poverty in 2029/30 as a result of the measures.

“It’s particularly concerning that the government plans to make cuts to PIP [Personal Independence Payment], which may actually undermine disabled people’s ability to sustain employment… For people who lose their PIP entitlement at their next assessment, which is estimated to happen for 370,000 current recipients at a loss of £4.5k per year, this could be devastating for their ability to remain in work.”

• The National Enterprise Network (NEN): The Spring Statement has failed to address the needs of the UK’s entrepreneurial sector, despite nearly half of UK adults considering starting a business in 2025, equating to the 800,000 start-ups launched annually across the country. “Enterprise Agencies are being forced to reduce operations, severely impacting the support available for new businesses. Combined with the upcoming increase in employee National Insurance, living and minimum wage and the new Employment Rights Bill, this all represents a significant blow to the small business community,” commented Alex Till, chairman of NEN.

NEN reports that the majority of their members have already been reporting job losses, some of up to 50% of their workforce as they have been sustaining critical roles and programmes since last year on their own reserves. Many are now expecting further cuts and possible closures from June.

• Dominic Holmes, principal, value and strategy, Cornerstone, said: “Getting new workers in means investing in skills, and data from Cornerstone shows that more than half (55%) of employers don’t fully understand their existing skills gaps, leading to a growing workforce readiness gap.”

• Doug Rode, Michael Page managing director UK&I, added: “Following the Spring Statement, many businesses are preparing for changes in April. With an increase in the National Minimum Wage and updates to NI to consider, alongside the upcoming Employment Rights Bill, many employers are carefully evaluating their hiring strategies.

“As a result, holistic talent strategies will come to the fore, as business leaders look to hiring as a whole rather than by specific teams. This will unlock opportunities for cross-functional hires, where overlapping skills bring versatility and value.

“Businesses should not see the upcoming changes as a reason to batten down the hatches – it’s a chance to reset and build stronger, more adaptable recruitment strategies.”

• Hamish Martin, partner at LAVA Advisory Partners, said: “The Chancellor was true to her word that today’s announcement would be more of an economic update than delivering a raft of tax reforms or spending commitments. For businesses, hopes of U-turns on previously announced policies such as NI hikes did not materialise, meaning no relief for the escalating costs that are creating headaches for many of the UK’s 5.5m SMEs.

“More broadly, the challenging economic landscape for SMEs – higher inflation, wages and borrowing costs – points towards a potential spike in M&A activity. The extremely modest forecasts for the UK economy could make life challenging for small companies, in turn opening the door to more consolidation across various industries. Whether it’s private equity firms seeking new opportunities to inject capital they’ve raised and need to deploy, or larger firms targeting smaller competitors to acquire particular skills, IP or specialisms, we should expect players with stronger finances and bolder ambitions to remain active through M&A activity while others focus on survival.”

• Seb Maley, CEO of tax insurance firm, Qdos, said: “With indications that the government’s crackdown on tax evasion is ‘gathering pace’, the key takeaway here is that HMRC is set to have more resources at its disposal and information at its fingertips. Being confident in your tax compliance is more important than ever.”

• Ronni Zehavi, CEO and co-founder at HR platform HiBob, said: “Every British business was watching the Spring Statement in hopes of seeing NI Contribution relief. With less than two weeks until implementation, employers are now forced to continue making difficult budget decisions, with many reducing hiring, freezing or modifying wages and cutting back on staff investment.

“The cost of employing people remains the most significant burden on businesses. With new employment obligations set to be rolled out in April to support working Brits, it is crucial government doesn’t overlook the vital need for assistance to those employing them. Today’s lack of support is another blow, but businesses must remember the value in investing in talent in the long run.”

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