UK-based accounting firm FFT Accountants has advised businesses and individuals not to be reassured by the lack of immediate tax changes.

The accounting firm said this after Chancellor Rachel Reeves’ 2025 Spending Review.

The Spending Review has committed substantial funding to the NHS, housing, and defence sectors.

However, it has also left other areas facing either flat or reduced budgets, raising concerns about overall fiscal health.

It emphasises that the current conditions may not support the promised financial commitments in the long term.

In light of these challenges, FFT has urged clients to adopt a cautious and forward-looking approach.

FFT director Sam Bacall 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.”

Bacall noted that although the government stated that there won’t be any burden on working people, but the recent suggestions of council tax rises point in a different direction.

“Talk of 5% 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.”