As Reeves looks to balance the books here's how you can beat Spring budget

SPRING is always a good time to take stock of your personal finances, but never more so than in 2025.

- By Harvey Jones Personal Finance Editor

We are moving into the busiest part of the year for our money as Chancellor Rachel Reeves prepares to unveil next Wednesday's Spring Statement, which will be all too swiftly followed by the end of the tax year on April 5.

It's important to stay on your toes, with taxes at a 70-year high and rising, while state benefits come under attack as Ms Reeves battles to balance the books.

While the Spring Statement is not expected to be as brutal as last October's Budget, we could still face a nasty shock.

Regardless of what Ms Reeves has up her sleeve, it's vital to make full use of your annual tax allowances before they expire.

Thousands of pounds are at stake in tax relief, as well as other vital exemptions and allowances. They may have reduced or been frozen in recent years, but that only makes it more important to maximise what's left.

Firstly, some good news. There are no major tax increases expected next week, despite rumours Ms Reeves would cut the cash ISA allowance to just £4,000.

There are, however, reports that she may extend the income tax threshold freeze from 2028 to 2030, but we won't know until the day.

Myron Jobson, senior personal finance analyst at Interactive Investor, has warned the tax increases Ms Reeves has already announced will take their toll.

He said: "Now is the time to fight back. There's plenty you can do."

USE YOUR ISAS

A key step is to maximise your ISA contributions before the tax year ends on April 5.

Mr Jobson said: "All the speculation over cash ISAs serves as a timely reminder to use this brilliant opportunity to avoid paying tax on your savings and investments for life."

Every adult can pay up to £20,000 a year into an ISA, plus up to £9,000 in a junior ISA for under-18s. All capital gains, dividends and interest are tax-free for life, making this a hugely valuable benefit.