Confidence is key, but the Spring Statement didn't deliver much of it for personal finances

Well, was that a Budget or a statement?

My sense is the Chancellor won the war of words with the Tories over whether this was an “emergency budget” or a “spring statement”.

Chancellor of the Exchequer Rachel Reeves with Defence Secretary John Healey and Chief of the Defence Staff Admiral Sir Tony Radakin during a visit to Wellington Barracks, London, to meet with defence personnel spearheading defence and security innovation. Picture: Stefan Rousseau/PA Wire | PA

Really what we just witnessed was rehash of the October Budget, with some extra shouting about its effects.

The statement pressed on the old bruises while inflicting new miseries in the form of welfare cuts.

And there was talk of growth. Not this year - that forecast was halved - but maybe next year, and maybe the year after that unless events intervene.

Tom Ham | Supplied

From the technical financial planning perspective, there wasn’t much to get newly het up about.

There was no tax news other than a further crackdown on evasion.

Pensions remain un-tinkered with since October; chat about adjusting cash Individual Savings Accounts (ISA) limits has been punted down the road; and increased inheritance tax receipts contribute to the Office for Budget Responsibility’s positively trending forecasts for years that aren’t this one.

In 2029/30, receipts are forecast to rise to £14.3 billion, with around £2.5bn of the rise due to policies announced in the 2024 budget.

It will have done little to reassure anyone or relieve the sense the UK economy remains vulnerable in an uncertain world.

Reeves restored her £9.9bn fiscal headroom, but didn’t restore confidence that it wouldn’t be obliterated again.

The markets haven’t moved, showing once again that pre-releasing measures in the lead-up makes for an immediate soft landing.

But the coming days and weeks will show the markets passing their judgement on that halving of the growth forecast and whether the growth rhetoric can amount to much in reality.

Reeves mustered a rousing description of the new investment in defence spending, outlining how the UK will become a defence-industrial superpower bringing tech to the frontlines, with the effects of this galvanism felt in every part of the economy.

This was inspiring stuff and received only acclamation.

My ears pricked up with the talk of how deregulation would lead to growth. I wondered if there was going to be something exciting from the Financial Conduct Authority’s January brainstorming session.

But in the end it was just a restatement of the great planning reforms we heard about in 2024.

We got a sniff of the direction of their efforts in the documentation, though, with mention of “the government is working closely with the Financial Conduct Authority to deliver a system of targeted support to give people the confidence to invest”.

Options for ISA reform are still on the table, as the government looks for levers to drive investment from cash to equities.

As the document acknowledges, balance is key here. Cash ISAs are hugely popular because they are easy to understand and are low risk, especially in uncertain times.

Confidence is the key and there wasn’t much of it on display today.

Tom Ham is the group chief executive at Calton Wealth Management