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Autumn Budget 2025: your go to guide
When is the Autumn Budget?
As we head into the final months of the year, attention is turning towards one of the key economic milestones, the Autumn Budget. Scheduled for 26th November this year, the Budget is an essential part of the financial calendar, not just for policymakers and economists, but for households, businesses and advisers to understand the direction of travel.
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While every Budget matters, the stakes feel especially high this year. The economic outlook remains uncertain, government borrowing costs have rocketed, and a growing number of taxpayers are already feeling the pain from continued frozen allowances and the changes announced in last year's Budget.
So, what exactly is the Autumn Budget for, and why is it such an important event?
Understanding the Budget’s role
The Autumn Budget is the government’s main opportunity each year to set out its plans for taxation, public spending and economic strategy. It’s when the Chancellor outlines how the government will raise and allocate money in the year ahead, usually supported by economic forecasts from the Office for Budget Responsibility (OBR).
These forecasts cover everything from inflation and interest rates to borrowing, debt levels, and projected economic growth, all of which shape the decisions being made in the Budget itself.
The Autumn Budget is often accompanied by a Spending Review, which sets departmental budgets for the medium term, though not necessarily every year. In contrast, the Spring Statement, usually delivered in March, tends to be lighter, more of an economic update than a full fiscal event, though it can include policy changes when needed.
In recent years, the Autumn Budget has become the main fiscal moment of the year. The Spring Statement, while still useful, is generally more reflective in tone. Some recent commentary has suggested that the government may be considering a move to just one formal fiscal event per year, but as of now, the current two-event framework remains firmly in place.
Raising revenue by stealth
One of the most effective tools for raising revenue in recent times has been the simple decision to freeze tax thresholds and allowances, rather than increase them in line with inflation. This is often referred to as “fiscal drag” or stealth tax.
The concept is straightforward. When income tax thresholds stay fixed, but wages rise, even modestly, more people are pulled into higher tax bands. Likewise, with allowances reduced for capital gains or frozen for inheritance tax, for example, more estates and investments gains become taxable over time.
These quiet changes can bring in billions in additional revenue without altering headline tax rates, and they’ve become a central part of the government’s fiscal approach. The freeze on the personal allowance and higher-rate income tax threshold began in 2021 and is currently extended to at least 2028, with rumours this could be further extended in the coming Budget.
For financial planning, this makes the Autumn Budget a critical event. It’s not just about new taxes or reliefs being introduced or withdrawn; it’s about understanding how existing policies evolve by, some cases, staying exactly the same.
How will the Autumn Budget affect me?
With the Autumn Budget fast approaching, attention is turning to what the Chancellor might announce this time around.
While nothing is confirmed, early speculation includes:
- An extension of existing tax band freezes, particularly income tax and inheritance tax thresholds
- Restrictions on pension tax reliefs or changes to contribution limits
- Restrictions on the tax-free cash available from pensions, though it is important to remember when the tax-free lump sum has been reduced before, protections were put in place to ensure individuals who had already built up savings in their pensions were not disadvantaged.
- Property tax reforms, potentially around stamp duty or council tax
- ISA reforms, possible reduction in the Cash ISA allowance
This is purely speculation at this point so it’s advisable not to make rash decisions before knowing exactly what the outcome will be. However, given the current economic environment, including sluggish growth and high debt interest costs, the government has limited room to manoeuvre, so sadly it’s wise to be prepared. Potentially, if there were financial decisions you were planning to make anyway, that could possibly be impacted by the Budget, now could be the time to make them.
How we can help
Whether you're a business owner, investor, retiree or employee, the Autumn Budget can affect you in ways both obvious and subtle. Whether through active policy changes or passive revenue generation via fiscal drag.
We’re following developments closely now and in the run-up to November’s announcement. We’ll be keeping these pages updated with the latest news, including on the day of the Budget with a full run down of all the announcements
In the meantime, if you’re concerned in anyway how the Budget may affect your finances, why not get in touch and see if we can help.
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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.
The Financial Conduct Authority (FCA) does not regulate cash flow planning, estate planning, tax or trust advice.
FAQs
Yes - all the savings accounts included in our tables are covered by the Financial Services Compensation Scheme (FSCS)
The FSCS can automatically pay you compensation of up to £85,000 per person, if your bank, building society or credit union fails, and can’t give you back your money.
Some providers share an FSCS licence, for example Santander and Cahoot, which means that you need to keep the total amount held with both brands to £85,000 if you want all your cash to be protected.
How you open a savings account depends on the type of account you choose. Some can be opened online only, or via a mobile app, whilst others are available via a more traditional channel, via the post, in branch or by telephone. Some offer a variety of ways to open the account – you need to check with the individual provider.
This depends on the type of savings account that you choose. As the name suggests, an easy access account will allow you to withdraw money at any time, although there may be restrictions on how many times you can do this, without penalty.
Notice accounts normally require you to give a notice period before the money is sent to your current account, although in some rare cases you could take it immediately whilst paying a penalty equivalent to the amount of interest you would have earned over the notice period.
Fixed rate bonds will normally allow no access at all until maturity, except in the case of death, so you should be happy to tie up your money for the term of the account.
Fixed rate cash ISAs, do allow early access, but there will be a penalty for doing so. As a result, once again it makes sense to check you are happy that you won’t need earlier access.
It’s rare to see a high street bank in the best buy tables, although not unheard of. Generally, high street banks depend on their brand to attract the cash they need, whilst lesser-known providers need to offer more interest to gain publicity and therefore entice new savers. As long as the providers are fully regulated and authorised and therefore part of the Financial Services Compensation Scheme (FSCS), there’s no reason not to consider taking a well-informed leap of faith and switching your cash. Don’t allow the high street banks to take advantage of inertia and nervousness when there are providers out there who are prepared to pay more for your custom. All providers that appear on our Best Buy tables are either directly covered by the FSCS, or place your funds with a bank or building society that is, so your money is protected up to the limit of £85,000 per person, per banking licence.