Autumn Budget 2025: What Could Be Coming?

Chancellor Rachel Reeves has confirmed that the 2025 Autumn Budget will be delivered to Parliament on Wednesday, 26 November 2025. This is later than usual, giving the Treasury extra time to review economic forecasts and refine policy decisions.

While we wait for the detail, speculation is growing about the possible direction of tax and spending measures.

Key Areas to Watch

1. Income Tax Thresholds and Fiscal Drag

Although there is a commitment not to raise the main tax rates, income tax thresholds are likely to remain frozen. This means more people gradually move into higher tax bands as wages rise, without any change in the headline rates.

2. Pensions and Savings

Several reports suggest that reforms to pensions could be on the table. The 25% tax-free pension lump sum may face further restrictions, and salary-sacrifice arrangements (where employees exchange part of their salary for pension contributions or other benefits) could also be tightened.

ISAs may also be reviewed, with potential changes to allowances or structures affecting how people save and invest.

3. Capital Gains and Inheritance Tax

Capital Gains Tax (CGT) and Inheritance Tax (IHT) could face significant changes. Possibilities include higher CGT rates, lower exemptions, or adjustments to IHT thresholds for wealthier estates. A so-called “mansion tax” or revisions to stamp duty have also been discussed.

4. Employer Costs

Businesses are still adapting to the rise in employer National Insurance contributions introduced in April 2025, which increased from 13.8% to 15% and reduced the threshold from £9,100 to £5,000. This is expected to raise around £25 billion annually, but has raised concerns about potential job losses, particularly in sectors with higher numbers of lower-paid employees.

Why the Budget Timing Matters

Announcing the Budget so late in November means there will be less time for households and businesses to prepare for changes before the start of the new tax year in April 2026. It also prolongs uncertainty in the short term, as firms try to plan investment, hiring, and pay decisions without clear information.

What Individuals and Businesses Can Do Now

Rather than waiting for the announcements, there are practical steps to take now:

• Stay informed – follow updates from trusted news and financial sources.

• Review your finances – check how frozen thresholds or potential tax rises could affect you or your business.

• Plan scenarios – consider the impact of possible changes to pensions, savings, and capital taxes.

• Build flexibility – avoid committing to long-term decisions that could be affected by new rules.

• Seek advice early – speak to your accountant or financial advisor about how best to prepare.

Final Thoughts

The 2025 Autumn Budget is shaping up to be one of the most closely watched in recent years. With the government balancing economic responsibility and political promises, the measures introduced will affect households, savers, and businesses across the country.

While we can’t know the detail until 26 November, we do know this: preparation and awareness will make all the difference when the changes arrive.

Sources

• Rachel Reeves’s autumn budget will take place on 26 November – The Guardian

  
  

  https://www.theguardian.com/uk-news/2025/sep/03/rachel-reeves-autumn-budget-tax-increases

• Will taxes rise further in the 2025 Autumn Budget? – MoneyWeek

  
  

  https://moneyweek.com/personal-finance/tax/budget-tax-rises

• UK budget speculation adds to risks for the economy – Reuters

  
  

  https://www.reuters.com/world/uk/uk-budget-speculation-adds-risks-economy-2025-09-03

At TCW Accounting & Training Solutions, we’ll be keeping a close eye on the Budget and what it means for our clients.