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 savings 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.’
To read or download the full summary click here – The 2025 Budget.
If you have any questions relating to the budget, please do get in touch with us by calling 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it.
Haidee is our Personal Tax Director and is a fully qualified tax adviser, having achieved the ATT qualification in 2006. Tax efficiency being her main concern. Specialising in taxation, Haidee provides clients with advice on personal tax, PAYE services, VAT and social security. She also provides guidance to new start-up businesses.
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