Autumn Budget 2025 (Latest Announcement)

The Treasury has announced that this year’s Autumn Budget will be delivered on 26^th November.

The chancellor makes a budget statement each year to MPs in the House of Commons, which presents the Government’s fiscal plans; stating which taxes will be raised (or lowered), and where public spending will be focused – on areas such as health, schools, transport and other public services.

Last year, this Labour Government’s first budget in office brought about some significant changes to taxation, including: announcing proposals to bring pensions into the estate for IHT purposes as of April 2027, increasing Capital Gains Tax rates to 18% & 24% (from 10% & 20%), increasing employer National Insurance Contributions, and lowering the threshold at which Stamp Duty Land Tax is paid for first time buyers from £425,000 to £300,000.

This year’s budget comes against the backdrop of a difficult economic landscape, with the cost of government borrowing reaching a 27-year high on the 2^nd September. The interest rate paid on 30-year gilts (bonds), referred to as the gilt yield, reached 5.72%, increasing the costs of borrowing for the government. This has led to criticism being levelled at Chancellor Rachel Reeves for her management of the economy, however it should be recognised that the UK is not alone in seeing borrowing costs rise, with costs also rising to their highest levels since 2011 on 30-year bonds in France, Germany and the Netherlands. There are various factors affecting global borrowing costs, such as Trump’s trade policies, geopolitical uncertainty and conflict.

The options for this Government are made more difficult by their pre-election pledges not to increase taxes for working people, whilst attempts to balance the books through welfare spending cuts were shown to be incredibly difficult to get past Labour MPs. It is therefore expected that some tax rises will be announced in the upcoming budget, but the Chancellor is going to have to be creative if she is to stick to her ‘rules’.

We’ll be keeping an eye on further news as it emerges in the coming weeks, and, as we do every year, the team at Solomon’s will be watching the budget announcement live on 26^th November. We’ll subsequently be keeping you fully informed on any announcements that affect your financial planning.