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The UK Chancellor Rachel Reeves is set to formulate one of the most important financial updates in years. On 26 November 2025, Rachel Reeves will deliver the Autumn Budget 2025, outlining UK tax changes and spending plans that could shape the economy for years.

The government faces a serious financial challenge, and the choices made this autumn could shape the UK’s economy for the next decade. Here’s what matters, what could change, and how the Budget may impact you.​
 

The Real Problem: Why the UK Government Faces Tough Choices

The UK’s finances are under pressure:

• Inflation remains stuck around 3.8%, well above the Bank of England’s target.
   
• Economic growth is sluggish at just 0.3% per quarter.
   
• Borrowing is at record levels, reaching highs not seen for over 60 years.
   
• The government must find between £20 billion and £50 billion to close the fiscal gap
   

These figures highlight why many experts expect new tax measures in the Autumn Budget 2025 and why professional tax planning has become essential.  It’s a bit like a household budget that has gone out of balance. Eventually, you either cut spending or find new income. The Autumn Budget 2025 will show which path Rachel Reeves chooses.
 

Labour’s Tax Promises Tested in the Autumn Budget 2025

Before Labour came to power, voters were promised no tax rises on working people. The pledge covered:
 

• No increase in income tax
   
• No rise in employee National Insurance
   
• No change to the VAT rate of 20% 
   

Now, those promises are being tested. In her recent speech, Rachel Reeves said she would do what is “necessary, not what is popular.” That statement has left many wondering if tax increases are inevitable.
 

What Could Change in the Autumn Budget 2025

Income Tax: The Big Question

• Income tax rates could rise for the first time in almost fifty years.
   
• A potential increase might be balanced by a cut in National Insurance to reduce the impact on take-home pay.
   
• Even a 1% change would affect millions of workers and could raise billions in revenue.
   

If you are unsure how a rate change could influence your payslip or payroll costs, our Payroll Services team can help you calculate the real impact.
 

Capital Gains Tax: A Focus on Investors

• Rates may rise again, possibly aligning with income tax rates.
   
• The changes would impact anyone selling property, shares, or other investments.
   
• Higher capital gains tax could discourage investment and slow business growth, but it also provides a quick way to raise government funds.
   

For property owners or investors, our Property Tax Services provide guidance on minimising liability under future Capital Gains Tax reforms.

Inheritance Tax: More Families Affected

• The tax-free period for gifts could extend from seven to ten years.
   
• The nil-rate band of £325,000 might remain frozen.
   
• With house prices still high, freezing thresholds means more middle-income families will fall into the inheritance tax net.

If you wish to review your estate plan, our Inheritance Tax Advisory Services can help identify available reliefs before new rules take effect. 
 

Pension Tax Relief: Time for Savers to Pay Attention

• The tax-free lump sum could fall from £268,275 to £100,000.
   
• Pension tax relief and salary sacrifice rules might be tightened.
   
• For anyone building retirement savings, these changes could reduce how much can be sheltered from tax.
   

National Insurance for Businesses: Pressure on Employers

• Employee contributions may stay unchanged, but employer National Insurance could increase.
   
• Partnerships and professional firms might see higher payroll costs.
   
• Rising employer costs could mean slower wage growth or reduced hiring in some industries.
   

Our Accounting Services help businesses adjust budgets and maintain compliance when National Insurance rules change.
 

Cash ISAs: Possible Reduction in Allowances

• The annual allowance could drop from £20,000 to £10,000 or even £4,000.
   
• This would make it harder for savers to build tax-free funds.
   
• Experts warn that less saving power could lead to fewer home deposits and weaker demand in the housing market.
   

Business Rates: Mixed News for the High Street

• Smaller shops and restaurants may get relief from April 2026.
   
• A property revaluation next year could increase bills for others.
   
• Some businesses will benefit, but others may face higher costs depending on location and property values.
   

Property Taxes and Wealthy Individuals

• The government may adjust taxes on high-value property and assets.
   
• Wealthier taxpayers are likely to contribute more through these measures.
   
• These quiet adjustments can raise large sums without the public backlash that comes from raising income tax.
   

Good News: More Support for the NHS and Social Care

Despite the tough headlines, there will be some positive steps.

NHS funding:

• An extra £29 billion in real terms (about £53 billion in cash) each year by 2028–29.
   
• Health experts say this is welcome but may still fall short of demand.

Adult social care:

• Around £4 billion in additional funding over the same period.
   
• While these commitments bring relief, they highlight the scale of the challenge. Public services need more money, and the government must find sustainable ways to fund them.
   

The Big Picture: What It All Means

Rachel Reeves faces an almost impossible balance:

• Raising £20 to £50 billion without breaking major tax promises.
   
• Supporting the NHS and key services while avoiding an economic slowdown.
   
• Restoring fiscal credibility after years of high borrowing.
   

The most realistic outcome is a mix of moderate increases across capital gains tax, inheritance tax, pension relief, and various allowances. Large income tax hikes seem politically risky, but they remain a possibility.
 

When to Expect the Full Autumn Budget 2025

Mark your calendar:

• Wednesday, 26 November 2025 at 12:30 PM – Budget announcement by Rachel Reeves.
   
• The Office for Budget Responsibility (OBR) will release its updated economic forecast at the same time.
   
• Parliamentary debates will follow over the next four days.
   

This will be one of the most closely watched Budgets in recent memory, setting the tone for the UK’s economic policy into the 2030s.

What You Should Do Now

The Autumn Budget 2025 could affect your income, savings, business, or retirement plans. Now is the time to:

• Review your personal tax situation.
   
• Reassess pension contributions and allowances.
   
• Check whether your business could be impacted by new National Insurance or rate changes.
   
• Speaking with a qualified tax accountant before the announcement can help you prepare for what’s ahead.
   

If you want to understand how the Autumn Budget 2025 may affect your income, savings, or business, speak to our expert team today.
 

Call us on 020-8239-4999 or Email dhruv@doshiaccountants.co.uk. We will be happy to assist you.

The Bottom Line

The Autumn Budget 2025 is about making difficult but unavoidable decisions. The Chancellor must raise significant revenue, protect public services, and maintain growth without losing public trust.

For individuals and businesses alike, the Budget will bring adjustments that could shape financial planning for years. Whether you are a saver, investor, homeowner, or employer, this is a Budget that will touch your wallet in one way or another. The real question is not if changes are coming, but how far the government will go to fix the UK’s financial problem.

Disclaimer

This article provides general information only and is not financial or tax advice. Please consult a qualified accountant or tax advisor before making any financial decisions. Budget predictions may change before the official announcement on 26 November 2025. Sources referenced include BBC News, Reuters, the Office for Budget Responsibility, and live government and economic media reports.