BUDGET
Chancellor of the Exchequer Rachel Reeves set out tax-raising measures worth up to £26 billion in the Autumn Budget on 26 November 2025.
The increases will be achieved through a range of measures, including extending the freeze on Income Tax thresholds for a further three years.
Tax increases
In addition to maintaining Income Tax thresholds, taxes on property, dividend and saving income will be increased.
The Budget also announced employee and employer National Insurance contributions (NICs) on salary sacrifice pension contributions above £2,000 a year and introduced a tax on homes valued at £2 million or more.
That is my choice
On spending, Ms Reeves took action to cut energy bills, freeze rail fares and end the two-child benefit cap.
Ms Reeves said: ‘I can tell you today that, for every family we are keeping our promise to get energy bills down and cut the cost of living with £150 taken off the average household energy bill from April.
‘Money off bills, and in the pockets of working people. That is my choice.’
See below for our summary of the changes.
© This publication is published for the information of clients. It provides only an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.
