Crackdown on ‘hiding money offshore’ announced in UK spring statement

Today’s spring statement from the UK’s chancellor brought no major targeted changes for Britons abroad, with headline measures focusing on welfare cuts and cutting fraud in order to balance the books.

However, some points, including defence pledges and the effects on the pound / euro exchange rate are of note.

The measures come as the UK government’s forecasts of the country’s economic growth have been halved from 2% of GDP this year to only 1%.

They also come, as Chancellor (finance minister) Rachel Reeves said the country is having to face more global economic uncertainty, which has seen the cost of borrowing rise.

Key points of interest include:

Welfare cuts

The statement includes plans to “put welfare spending on a more sustainable trajectory”, with £4.8 billion of savings by the UK financial year 2029-2030.

Among points raised were a review of how people are assessed for PIP (Personal Independence Payment) disability benefit and the criteria for claiming this. Some people living in France continue to claim this benefit (which replaced the former Disability Living Allowance).

Defence spending

The government says that to reflect increased security threats it is increasing ‘Nato-qualifying defence spending’ by 2.5% of GDP by April 2027.

This includes an extra £2.2billion for the defence ministry in the UK financial year 2025-2026.

This will partly be spent on joint exercises with Nato allies “to ensure we are ready to respond together to the threats we now face”, as well as buying new military technology such as ‘directed energy weapons’.

Fighting tax evasion

“Stronger action” is promised against lost tax revenue, including prosecuting more tax fraudsters and launching new criminal investigations into such activity including against money-launderers.

This will include action against wealthy people who “hide money offshore”.

There will be a new reward scheme for those providing information about serious cases of tax fraud (taking inspiration from US and Canadian models) by giving a percentage of extra tax taken as a result (France operates similar schemes) to the informant. 

Simplification of the UK’s tax formalities is also promised.

Exchange rate impact

A slight dip in the pound to euro exchange rate was seen linked to today’s spring statement (dropping overnight from around €1.20 to €1.19).

Today’s statement follows on from the main budget last October.

Read more: UK autumn budget – what changes for Britons in France? 

In a background briefing paper, the House of Commons Library states that the measures come in a context which includes President Trump’s imposition of new trading tariffs (or threats of new tariffs) and his “softening of position towards Russia”, which has seen the UK and other European nations increase defence spending.

In the UK economic growth has meanwhile been only “modest” in the intervening period.

The Chancellor has stated she wants to make “major” tax and spending announcements only once a year, hence the fairly limited scope of today’s changes.

We note that last year’s announcement included confirmation of new rules around the UK’s ‘non-dom’ status, as of April 6, 2025, which largely addresses liability to UK inheritance tax.

This does not affect residents in France as UK inheritances are governed by a specific treaty between the UK and France, but tax experts say it may affect some individuals who move / are moving to the UK after many years in France.