Following Rachel Reeves’s first multi-year Spending Review as Chancellor, Manchester-based FFT Accountants is encouraging businesses and individuals not to be reassured by the lack of immediate tax changes.

The review pledged billions for the NHS, housing and defence sectors, but left others facing flat or reduced budgets.

While the Chancellor has insisted that her spending plans are fully funded, FFT believes the underlying economic uncertainty raises serious questions about how sustainable this will be in practice.

Commenting on the review, Sam Bacall, Director at FFT, said: “From a tax perspective, there’s not a great deal to unpack in this Spending Review, but that in itself tells a story.

“The Chancellor insists the funding is in place for the new commitments, but given the uncertain and fragile economic outlook, and the continued impact of global events, it’s hard to see how that holds true over the coming months. We would not be surprised to see tax rises later this year.”

Sam added that while the government has stated there will be no new burdens on working people, recent suggestions of council tax rises point in a different direction.

“Talk of 5 per cent council tax increases is disappointing. It contradicts repeated messaging about protecting working households.

“If additional revenue is needed, and it’s looking increasingly likely, we expect it to come not just through headline rates but also through more discreet measures.

“These could include freezing income tax thresholds for longer or tightening tax reliefs on pensions and savings, impacting millions across the nation.”

With businesses already facing uncertain conditions, FFT is encouraging clients to take a cautious, forward-looking approach.

“While this review doesn’t introduce immediate tax changes, businesses and individuals alike should start considering how potential tax measures could affect their finances and plan accordingly.”

FFT Accountants offers practical, expert support across everything from day-to-day bookkeeping to complex tax matters.

The firm is known for its friendly approach and clear advice, working closely with clients to help them stay on top of their finances and ahead of any changes.

For more information or to speak with an advisor, visit www.fft.co.uk or get in touch at 0161 834 2574.