When will the chancellor deliver the 2025 Budget?
The chancellor announced on 3 September 2025 that Autumn Budget 2025 will be held on Wednesday 26 November.
What will Autumn Budget 2025 mean for individuals, businesses and their accountants?
The political and economic landscape in the UK is shifting rapidly, and this autumn’s Budget promises to be another significant event. For accountants in practice, particularly those serving small and medium-sized enterprises (SMEs) and individuals, the developments emerging from Westminster are far more than just headlines; they’re the early signals of the types of support that clients may require over the coming weeks and months, in managing possibly unexpected tax burdens.
Policy U-Turns and a Budget Under Pressure
In recent months, we have seen significant government U-turns. These included:
Winter Fuel Payments (WFPs) – A July 2024 ‘tough choice’ by the chancellor meant that, from winter 2024/25, households would no longer be eligible to receive the £200 – £300 WFPs unless they received certain means-tested benefits. This policy, while implemented for winter 2024/25, was met with widespread criticism and has now been reversed, for eligible individuals earning less than £35,000, when looking ahead to winter 2025/26. This change in plan has led to more than a £1 billion gap in the government’s finances.
Welfare reform – In Spring Statement 2025, over £5 billion of savings from the welfare budget were
announced, as part of a plan to ‘support more people back into secure work’ and to, it would seem, avoid the government breaking its own recently set borrowing and debt rules. In June 2025, after ministerial backlash, significant changes to the welfare plan were announced, with protections now embedded for current claimants. The revised package is expected to deliver welfare savings of closer to £2.5 billion, with as much as £3 billion now missing from planned government finances.
The Labour Party has been clear that it will not fund these changes through government borrowing, which leaves only one realistic option: to raise taxes.
Policy U-turns on such a scale within the tax system also create uncertainty and stagnate the recovery of the UK economy. All in all, an unfavourable fiscal reality that now needs to be levelled out to take the UK on a path to economic growth.
Autumn Budget 2025 Predictions
The chancellor had said that the 2024 Budget, with its significant tax increases, was one that she ‘would not want to repeat’. However, for the reasons outlined above, fiscal circumstances have not allowed the government to ‘wipe the slate clean’ and it is all but certain that another round of tax rises are coming this year.
What does the manifesto and roadmap say?
The government will be keen to be seen as honouring its 2024 ‘Change’ manifesto pledges, and these include ensuring taxes on working people are kept as low as possible and no increases to National Insurance, the basic, higher or additional rates of Income Tax, or VAT. The 2024 Budget has already pushed the boundaries of these promises by increasing the rate of employers’ National Insurance Contributions (NICs) from 13.8% to 15% from 6 April 2025 and indirectly stalling wage growth.
The Corporate Tax Roadmap of October 2024 also include commitments not to increase the 25% main rate of corporation tax and to retain the small profits rate and marginal relief. The £1 million annual investment allowance for plant and machinery capital allowances is also due to be preserved, as is the system of permanent full expensing. Enhanced research and development tax reliefs will also be retained for companies undertaking qualifying activities.
The takeaway?
In keeping with her fiscal rules and in an attempt to generate additional revenue, the chancellor is likely to announce wide-ranging changes in the budget, whether badged as ‘wealth taxes’ or otherwise.
Individuals and family businesses will be affected, and for many, it will be unwelcome. Clients will look to their accountants and trusted advisers for a glimmer of hope; a plan or strategy to retain as much of their income and wealth as possible.