Experts Comment: What Does the Spring Budget Speech Mean for Businesses and Startup in the UK?

Gina Marrs

2 months ago

All eyes were on Rachel Reeves last week Wednesday when the UK delivered the much anticipated Spring budget for 2025, including so interesting updates on the current state of the country’s economy, five-odd months after the Autumn budget speech.

Unsurprisingly, expectations were high and predictions were all over the place regarding changes that were to be made and other issues that may stay the same.

In anticipation of Reeves’ speech, we spoke to business leaders about what they were expecting and hoping to see in the UK’s Spring budget.

Now, in the wake of the announcement, we’ve got experts’ reactions to the budget, including what experts believe this means for businesses in the UK.

Key Takeaways from the 2025 Spring Budget Speech

Budget speeches may not be quite as long as they have been in the past (fun fact: the longest ever continuous budget speech in the UK was about four hours and 45 minutes, delivered by William Gladstone in 1853), but Reeves still managed to pack in a whole lot of important information that has got business leaders spinning.

So, what were the main points she made? Here are the key takeaways from last week’s 2025 Spring budget speech in the UK:

No New Tax Increases: There will be no more increases in tax. Rather, the idea is to hold tax fraudsters to account, increasing this number by 20%.
Inflation: Inflation was recorded at 2.8% on Wednesday, the 26th, revealing quite a fall from the 11% that it reached under the Tories. However, inflation is predicted to reach 3.2% on average his year (as predicted by the Office for Budget Responsibility, OBR), before eventually dropping to about 2.1% by 2026. From there, the OBR is expecting it to settle at 2% by 2027, which is the target that’s been set by the Bank of England.
Growth Forecast: The UK’s OBR has set the forecast at a drop of 1%, from 2% to 1%. Meanwhile, the Bank of England is expecting the UK’s economy to grow by 0.7% by the end of 2025.
Housing: Housing is expected will result in a 0.2% boost to the UK’s GDP, and the OBR forecasts that 1.3 million new homes will be built in the next five years.

So with that snapshot of the Spring budget speech in mind, here’s what business experts have to say about the Spring budget means for businesses in 2025.

Our Experts:

Nigel Holmes: Tax Director of Research and Development at Ryan
Emma Graham: Partner at Mewburn Ellis
Ming Kong: Co-Founder and CEO of TG0
Charlie Precious: Principal at Ryan
Sam Hields: Partner at OpenOcean
Laurent Descout: CEO and Co-Founder of Neo

Nigel Holmes, Tax Director of Research and Development at Ryan

“The £400 million defence innovation fund is a strong signal that defence R&D is being prioritised, particularly in AI and emerging technology. This creates a significant opportunity for UK tech companies, especially those working in automation, cybersecurity and data analytics, to align with the Ministry of Defence’s innovation goals.

Military contracts have been hard to access for smaller firms in the past. But this funding, if paired with procurement reform, could open the door to startups and scale-ups to play a greater role. R&D tax credits, if properly claimed, can give them the runway to innovate with confidence, especially in these high-complexity areas.

Small businesses should track how this funding is deployed, and ensure they’re audit-ready for R&D claims tied to high-complexity workstreams like AI, robotics, or materials engineering.”

Emma Graham, Partner at Mewburn Ellis

“The UK plays host to a wealth of AI talent; with major companies such as Google’s DeepMind, OpenAI, Anthropic, Microsoft and Meta AI all having a significant presence in London. In terms of AI infrastructure and startup culture, it is already an attractive place for global investors in AI to invest.

“It’s fantastic to see the UK government recognising this potential and increasing spending in cutting-edge AI technology. The investment should help the UK to build upon its strong foundations and hold its current position as the third largest AI market in the world.”

Ming Kong, Co-Founder and CEO of TG0

“The focus on economic growth is encouraging, but for UK tech companies like TG0, real progress comes from investment in innovation, talent, and infrastructure. The commitment to AI and advanced manufacturing is a step in the right direction, but we need more direct support for deep-tech startups and scale-ups, streamlined access to R&D funding, and policies that help us attract and retain global talent. Growth won’t come from just top-down spending—it has to be nurtured at the grassroots level with smarter incentives for businesses driving real technological change.”

Invest & R&D: “More AI funding is great, but we need more than just headlines. Faster grants, R&D credits that cover hardware, and fewer delays would actually help companies like TG0 scale.”

Support for SMEs: “Small tech companies drive real innovation, but if hiring gets more expensive, we lose momentum. Raising National Insurance makes growth harder, not easier.”

Attracting Global Talent: “The UK leads in AI, but that advantage slips if we make it difficult for world-class engineers to relocate here. A streamlined, responsive, and affordable visa system could give the UK a real competitive edge.”

On Infrastructure & Ecosystem: “Innovation isn’t just software—it’s hardware, manufacturing, and new materials like what we do at TG0. The UK needs more support for physical innovation, not just AI models.”

Charlie Precious, Principal at Ryan

“[The 20225] Spring Statement was largely what the Chancellor promised, a non-fiscal event and in this case, no news is good news. After a period of constant change, many will welcome a sense of stability.

However, the significant downgrade in the UK’s OBR growth forecast from 2% to 1% will understandably raise alarm bells for many businesses already navigating a challenging economic climate.

Now more than ever, companies must ensure they’re not leaving money on the table, only paying exactly what they should be paying. That means utilising every available tax relief and incentive, such as full capital expensing and R&D tax relief, while also embracing the latest tax technology tools to ensure accuracy, compliance, and efficiency. These tools can make a huge difference in managing costs in a slower-growth environment.”

Sam Hields, Partner at OpenOcean

“The Chancellor’s Spring Budget sends a more balanced signal on innovation-led growth. While backing the Oxford-Cambridge Arc as ‘Europe’s Silicon Valley’ may win headlines, the chancellor’s commitment to strategic partnerships with regions like Greater Manchester, West Yorkshire, and Glasgow through the National Wealth Fund is just as critical.

To build a globally competitive industry, the government must back regional tech hubs across the country. AI and enterprise software startups are scaling up outside London and the South East, with Belfast and Manchester leading the way. Access to high-quality capital at market-standard terms will be vital to allow startups to grow where they are, rather than be sucked into London or across the Atlantic. Success stories like York-founded planning software company Anaplan, recently acquired for over $10.7 billion, show that world-class tech can be built outside traditional hubs.

For founders and investors alike, confidence in the UK market hinges on more than flagship projects. It is crucial for the government to send a clear signal that the UK remains one of the best places to build, scale, and exit. That’s how we attract global talent, reverse the trend of startups listing abroad, and strengthen the entire venture ecosystem.”

Laurent Descout, CEO and Co-Founder of Neo

“The lack of a clear commitment to university funding is a major concern. The UK fintech sector depends on a steady pipeline of highly skilled graduates, yet financial pressures on universities put this at risk. Without proper funding and incentives for research and spinouts, the UK’s leadership in fintech and financial innovation is in jeopardy.”

It is disappointing that the Chancellor failed to address the challenges facing SMEs. With company insolvencies at their highest level in a decade, businesses need real backing, not higher taxes and reduced incentives. The planned increase in capital gains tax on Business Asset Disposal Relief could deter investment in high-growth fintechs, making it harder for startups to scale and compete globally. The government must reconsider their approach and do more to ensure the UK remains an attractive place for entrepreneurs and investors.”