Print bosses hoping for reprieve from the upcoming hike to employers’ National Insurance Contributions and the National Living Wage were left disappointed, as Reeves reaffirmed Labour’s commitment to holding “just one major fiscal event a year,” leaving any major changes for the autumn budget.

Hemmed in by her self-imposed rules to meet day-to-day costs with tax revenues and ensure debt falls as a percentage of GDP by 2029, Reeves was forced to make further cuts to public expenditure – such as a controversial cut to payments for disabled people – in order to meet targets in the face of weaker than expected growth. 

Cuts announced yesterday (27 March) include £4.8bn from welfare and a £3.5bn reduction in civil service headcount.

The Office for Budget Responsibility (OBR) has also halved the UK’s GDP growth prediction to 1%, from its projection of 2% made in the autumn of 2024, with Reeves blaming global uncertainty for the downgrade.

“I am proud of what we have delivered in just nine months,” Reeves said.

“Now our task is to secure Britain’s future in a world that is changing before our eyes.”

Many printers saw little to surprise or delight in the statement.

“The statement doesn't do anything to give businesses confidence in any shape or form. I understand the government’s rationale of living within its means, but I find their approach to doing so unusual,” Greg Lerigo, managing director of industrial labeller Customark told Printweek.

“There are a lot of welfare cuts in there, and the knock-on effect will probably be in the macroeconomic picture: it will affect the whole economy, because there’s less money floating around. Really, the uncertainty that [the statement] creates is more of an issue than its direct impact: we look at it, and wonder if they’ll have to take another bite out of the cherry in the autumn – and where will that bite hit?”

Trevor Voisey, managing director of Sittingbourne SME Lemon Labels, said that he would have liked to see more in the statement for business – though added that he thought the Treasury’s policy of having just one major ‘fiscal event’ per year was “quite sensible.”

“I would have liked to see something more for business – it didn’t really seem to give us very much at all,” he told Printweek.

“I do think [having one fiscal event per year] is quite a sensible philosophy, and has the benefit of stopping knee-jerk reactions. At the same time, it hinders you from reacting [at all] if there is a genuine need to.”

The Chancellor’s policy of holding steady to the Treasury’s autumn budget commitments was, however, a source of frustration to Iain Clasper-Cotte, managing director of wide-format firm FaberExposize UK.

“When I talk to clients and other printers about that budget, everyone was astonished. In one afternoon, she managed to completely take any ambition or energy out of the economy,” he said.

“Wouldn’t it have been ballsy to come back and say ‘we’ve got it wrong: here’s what we’re going to do to really prime industry’? 

“But there’s nothing there in the statement to do that – it was a nothing statement.”

“It’s clear the Chancellor’s had to make tough decisions, with little room for manoeuvre, and in an unstable international climate,” Charles Jarrold, chief executive of the BPIF, told Printweek.

“But yesterday’s Spring Statement provided little comfort for anyone steering a business through tough times. Confidence is low following last Autumn’s Budget – instead of hiring and spending, our members are steeling themselves for increases in Employer NICs and National Living Wage, set to hit next week, while also having to adjust to costs and red tape across multiple areas: packaging waste regulations and employment legislation changes being notable examples.”

Lucy Swanston, chair of the Strategic Mailing Partnership, told Printweek that while the short-term road might be "bumpy," mailing printers have plenty of tools at their disposal to leverage the market's strength.

"While the government’s focus on lowering inflation, stimulating growth, and providing stability for businesses is encouraging, the path to achieving these goals is likely to be a bumpy road and unpredictable. Economic uncertainty can impact buying decisions, making it even more crucial for the print and mail industry to reinforce its value proposition," she said.

"While we cannot control macroeconomic policies, we can ensure that the mail channel continues to evolve, demonstrating its effectiveness through data-driven insights, creative innovation, and measurable ROI. Brands are increasingly looking for channels that deliver tangible results, and mail’s ability to drive engagement, acquisition, brand recall, and response rates makes it a compelling choice."

With no relief from the planned tax increases, further consolidation in the wider industry is likely, however, according to Hamish Martin, partner at financial advisory firm LAVA Advisory Partners.

He said: “The extremely modest forecasts for the UK economy could make life challenging for small companies, in turn opening the door to more consolidation across various industries. 

“Whether it's private equity firms seeking new opportunities to inject capital they've raised and need to deploy, or larger firms targeting smaller competitors to acquire particular skills, IP or specialisms, we should expect players with stronger finances and bolder ambitions to remain active through M&A activity while others focus on survival."

Businesses will struggle on their own to invest for the future over the next year, Clasper-Cotte added.

“I’m not aware of any change that is going to allow me to invest more in my business,” he said.

“If I were to get in my Tardis and go back before Brexit, then the councils and other local authorities had grant and investment programmes which we could access to invest in new machinery and drive our growth. 

“Now, there are a few small schemes linked to software, for example, but if I wanted to go spend a million pounds automating my production, there’s no help out there to help you de-risk or prime that kind of investment.”

Jarrold added: “The printing industry is always keen to invest, boost productivity and grow. It’s also always been adaptable and resilient – but it wants to thrive, not merely survive. The Government now needs to turn its attention to targeted business support to enable that investment in skills and in technology, this will give business the confidence it needs to support the growth objectives we all share.”