Spring Statement 2025, What Advisers Need to Know and What It Means for Their Clients

How the Spring Statement 2025 Impacts Financial Advisers and Their Clients

The world doesn’t stop for the Chancellor’s Spring Statement. Markets shift, advisers adjust, and clients ask what it all means for their portfolios. Rachel Reeves’ address yesterday was no exception. While no fiscal bombshells were dropped, the subtle reverberations will be felt across financial advisory firms.

Here are five key insights every adviser should have on their radar.

Economic Growth Outlook and Market Resilience

The Office for Budget Responsibility (OBR) slashed its economic growth expectations for 2025 from 2% to 1%, pointing to continued sluggishness. Inflation is also expected to remain higher, with consumer prices projected to rise by 3.2%.

“What our clients are telling us is that they are worried, and some are starting to prepare by speaking to their advisers and revaluating their financial plans.” Alice Harmer, personal wealth adviser at Schroders Personal Wealth.

For advisers, the lowered growth outlook signals heightened market volatility. Clients may lean toward more conservative investments. Portfolio diversification and inflation-linked products could provide stability.

Defence Spending and Sector Opportunities

A notable £2.2 billion increase in defence spending will see significant investments in strengthening military capabilities and technological innovation.

Reeves highlighted the allocation of funds towards emerging technologies, including AI and autonomous systems. This shift presents opportunities in sectors tied to defence contractors and advanced manufacturing. Advisers can identify potential growth in companies contributing to national security initiatives and technological advancement.

Navigating Welfare Cuts and Financial Planning Support

With £4.8 billion in welfare cuts forecasted to impact millions, financial advisers may need to assist clients supporting family members or exploring charitable giving strategies.

The government projects that savings from these reforms will reduce welfare spending as a share of GDP. The Universal Credit Health Element will be reduced for new claimants by 50% and then frozen, while additional investments will fund personalised employment support.

Advisers might see clients navigating financial pressure due to reduced welfare support, particularly those caring for disabled or elderly family members. Discussing strategies such as establishing emergency funds, rebalancing portfolios, or reviewing insurance coverage can provide essential financial stability during this period of adjustment.

Housing Growth and Property Investment Insights

The government plans to build an additional 170,000 homes in the next 4 years, using relaxed planning regulations to develop grey belt land. The OBR projects this initiative to increase the total housing stock by 0.5% and add 0.2% to GDP by 2029, with further long-term benefits

Advisers can explore opportunities in residential real estate investment trusts (REITs), infrastructure funds, and development projects. Monitoring the evolving housing market could present clients with long-term investment opportunities.

ISA Reform Speculation and Client Strategy Adjustments

While Reeves hinted at potential ISA reforms, no specifics were announced. Speculation around reducing the cash ISA allowance has raised questions about driving greater equity investment.

Nick Henshaw, Head of Intermediaries at Wesleyan Assurance Society, said “If and when cash ISA reform comes, savers may start exploring alternative solutions for their money that still provide the same tax benefits."

Advisers should prepare clients for possible changes by reviewing tax-efficient strategies and exploring diversified investment options.

Automwrite as a Strategic Partner for Advisers

The UK economic landscape is undergoing reform and advisers need tools that reduce the time spent on administrative tasks. Automwrite streamlines report writing, offering personalised suitability reports in minutes.

As the government recalibrates fiscal policies, Automwrite ensures advisers can deliver fast, accurate, and actionable insights to clients — helping them to continue to make informed decisions with confidence.