The Autumn Budget is set to be announced on 26 November, and while we don’t yet know the full picture, the Chancellor’s recent speech in Liverpool offered some clear clues about what may be coming.
Setting the Scene
Chancellor Rachel Reeves signalled a cautious outlook, saying:
“We will face further tests, with choices to come, made all the harder by harsh global headwinds and long-term damage to the economy, which is becoming ever clearer.”
Her remarks highlight two key challenges:
- Global pressures – including ongoing trade tensions, conflicts abroad and persistently high interest rates driving up costs.
- Domestic productivity issues – with the Office for Budget Responsibility (OBR) expected to publish a critical review of the UK’s long-term productivity trends.
The underlying message? Businesses shouldn’t expect major tax cuts – and modest tax rises may be on the horizon.
Possible Tax Changes
At this stage, it seems headline tax rates such as Income Tax, National Insurance, and VAT will remain unchanged. When asked directly about VAT, the Chancellor reaffirmed that the government’s manifesto commitments “stand”, adding that she aims to protect household incomes and avoid further price pressures on consumers.
However, this doesn’t rule out other ways of increasing revenue. One common method is to freeze tax thresholds, which effectively raises taxes over time as wages rise with inflation – a process known as “fiscal drag”.
Other areas that could come under review include:
- Pension tax reliefs
- Property and housing-related incentives
- Business reliefs
These changes could be presented as closing “loopholes” rather than introducing new taxes outright.
Additionally, the Chancellor has suggested reducing the frequency of OBR forecasts from twice a year to once. The aim would be to avoid unnecessary speculation and maintain greater economic stability between budgets.
What This Means for Businesses
While we’ll need to wait until 26 November for full details, this year’s Budget is likely to focus more on fiscal stabilityand repairing public finances than on new incentives or giveaways.
For businesses, the key takeaway is to stay prepared. Tax thresholds, reliefs, and reporting requirements may all shift – so keeping up to date and planning ahead will be vital.
At London Accountants, we’ll be monitoring the announcements closely and will provide a full summary once the Budget is released.
If you’d like tailored advice on how the upcoming changes could affect your business or personal finances, please get in touch – our team is always happy to help.
Source: BBC News – Autumn Budget 2025
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The Team at London Accountants
