Autumn Budget 2025

Ah, the Autumn Budget 2025 – that biannual ritual where the Chancellor, Rachel Reeves, strides into the spotlight like a fiscal superhero, cape fluttering, promising "fair taxes, strong public services, and a stable economy." It's the kind of event that makes you feel like you're watching a magic trick: now you see your money, now you don't. Delivered on 26 November 2025, this Budget is less "abracadabra" and more "tax-icadabra," with a heavy lean on frozen thresholds (stealth taxes in a parka) and a sprinkle of relief for the eco-conscious. Fear not, though – at Wright Pottage, we're here to translate the jargon, calculate the sting, and inject a dash of humour so you don't weep into your tax return.

We've scoured the official documents and expert breakdowns to bring you a concise yet comprehensive summary. We'll cover the big announcements, how they might nibble at your wallet (or, in rare cases, hand you a biscuit), and practical steps to weather the storm. Think of this as your Budget bodyguard – armed with facts, forecasts, and the occasional eye-roll.

The Headline Grabbers: Taxes – Because Who Doesn't Love Paying More for the Same?

The Budget's tax strategy? Freeze, tweak, and tax the posh bits. It's like the government saying, "We're not raising rates... we're just letting inflation do the heavy lifting." Expected to raise £40 billion+ annually by 2030/31, these changes hit personal and business pockets alike.

Personal Taxes: The Great Freeze (and a Side of Rate Hikes)

Income Tax & National Insurance Thresholds Frozen Till 2031: Personal Allowance (£12,570), Higher Rate (£50,270), and NI thresholds stay put from April 2028. Inflation's your new frenemy – expect to creep into higher bands without moving a muscle.
Dividend & Savings Tax Uplifts: From April 2026, dividend rates rise 2% (basic to 10.75%, higher to 35.75%). Savings rates follow suit from 2027 (basic to 22%, higher to 42%). Property income gets its own grumpy rates from 2027 (22%/42%/47%).
Pension Perks Curbed: From April 2029, salary sacrifice into pensions loses NI relief beyond £2,000/year – a cheeky £4.7 billion Treasury windfall. Unspent pension pots enter Inheritance Tax (IHT) scope from 2027.
ISA Allowance Sliced: Cash ISAs drop to £12,000 from £20,000 in April 2027 (over-65s spared).

Impact on you: Employees and self-employed folk? That frozen threshold means a stealth pay cut via bracket creep – if your salary rises with inflation (3.8% CPI as of September 2025), you'll owe more come payday. Pension planners, brace for trimmed incentives; it's like the government whispering, "Save for retirement? Sure, but not too efficiently." Satirical spin: Finally, a Budget that treats your dividends like they're auditioning for a horror film – "The Rate That Rose in the Night."

How to Respond: Review your salary sacrifice schemes now – max that £2,000 cap before 2029. For dividends, consider shifting to growth stocks or EIS/VCT investments (limits upped to £10m/£24m from April 2026). Book a chat with us to model your 2026-27 tax bill; early birds get the worm (or at least a deduction).

Inheritance & Capital Gains: For the Legacy-Minded (and Landed Gentry)

IHT Tweaks: Nil-rate bands frozen till 2031. Pension pots taxable from 2027; agricultural and business relief capped at £1m lifetime (transferable between spouses from 2026). Trusts get a £5m cap on charges for pre-2024 excluded property.
CGT Bites: Business Asset Disposal Relief up to 18% from April 2026. Employee Ownership Trusts relief halved to 50%.
 

Impact on You: Families with estates over £1m (or farms worth a pretty penny) face a tighter squeeze – that transferable relief is a nod to marital harmony, but the cap screams "share the love, not the loophole." Pensioners: Your nest egg just got an IHT eviction notice. Humour alert: IHT now includes pensions? It's like burying treasure only for the taxman to dig it up with a "Finder's Fee" invoice.

How to Respond: Gift strategically before April 2027. For CGT, time disposals pre-2026 or leverage new VCT/EIS perks. We're experts in trust tweaks – let's fortify your legacy without the drama.

Business Taxes: A Mixed Bag of Carrots and Sticks

Corporation Tax Stability: Roadmap intact, but writing-down allowances drop to 14% from April 2026, offset by a shiny 40% first-year allowance for new kit (excludes cars/second-hand).
Business Rates Remix: High-street heroes (retail/hospitality) get permanent relief; warehouses/online giants foot a bigger bill for properties over £500k.
Fuel & EV Shenanigans: 5p fuel duty cut extended to Sept 2026, then phased out. New EV road charge from 2028 (3p/mile for EVs, 1.5p for hybrids).
Stamp Duty Holiday for Listings: Three-year relief for LSE floats from Nov 2025 – a boon for scale-ups.
 

Impact on You: SMEs investing in green tech? Those zero-emission allowances extend to 2027 – hurrah! But if you're in logistics or own a mega-warehouse, rates hikes could add £millions in overheads. EV drivers (business or personal): Kiss free roads goodbye; it's the taxman's way of saying, "Congrats on saving the planet – now pay up." Satire: Business rates reform? More like "Robin Hood in Reverse: Tax the high street saviours to fund Amazon's empire."

How to Respond: Accelerate capex into 2026 for that 40% allowance. For EVs, track mileage now to budget for 2028 charges.

Spending & Welfare: The "Strong Public Services" Bit (With a Poverty Punch)

Welfare Wins: Two-child cap scrapped from April 2026 (£3.2bn cost by 2030/31), lifting 450k kids from poverty. Energy bills down £150/year via renewables tweaks.
Public Purse: £32bn extra annual spending by 2029/30, mostly welfare. Motability Scheme reformed to trim subsidies from July 2026.
Economic Outlook: GDP growth at 1.4-1.5% annually; inflation peaks at 3.5% in 2025. Debt hits 97% GDP by 2028/29 before dipping.
 

Impact on You: Families with kids? A genuine bright spot – more UC support means breathing room. Pensioners and low earners benefit from energy relief and frozen pensioner taxes. Businesses: Stable(ish) growth aids hiring, but post-2028 spending cuts could squeeze contracts. Quip: Scrapping the two-child cap? Progress! Just don't tell the Chancellor it's funded by your frozen allowances – that's like robbing Peter to pay Paul's daycare.

How to Respond: Claim UC adjustments ASAP from April 2026. Energy savers: Audit bills for rebates. For firms, eye government tenders now before the austerity encore.

The Big Picture: Stability or Stealth Squeeze?

The OBR paints a rosy(ish) forecast: Borrowing down to £67bn by 2029/30, rules met with a 0.6% GDP buffer. But with household incomes up just 2% by 2031 (post-inflation), it's no boom time. For our clients – from sole traders to family offices – this Budget's a reminder: Plan proactively, or let inflation pick your pockets.

Got questions on that dividend hike or EV charge? Let us know. Let's turn these changes into opportunities – because if the taxman's getting cheekier, so should we.

Warm regards (and a virtual tax umbrella), The Wright Pottage Team Balancing books with a wink since 2019.

P.S. If this Budget were a meal, it'd be economy-class cuisine: Nutritious in theory, but you'll leave hungry for more relief. Bon appétit!