Autumn budget 2025 predictions – what could be announced on the 26th November?
After Rachel Reeves delivered a short pre-budget speech this morning, there has been widespread speculation on what could be coming in the autumn budget later this month. Tax Director, George Lovell shares a few thoughts on what could be in the Chancellors speech in three weeks time.
A return of the 50% income tax rate for those with higher incomes.
In 2010/11 Alistair Darling introduced a top tax rate of 50% for those with income over £150,000 and it is conceivable that this could be rolled out again. The top rate of income tax is currently 45% and kicks in when income reaches £125,140. It could be said that this policy is consistent with Labour’s pledge not to increase the rates of income tax, VAT or NIC that apply to “working people” because their definition of working people appears to be based on a lower level of income than £125k.
Cancelling the freeze on fuel duty.
Successive governments have frozen the increase in fuel duty since 2011 and the current extension to this policy is due to end in March 2026 so the timing could be right to reinstate the annual increase.
An increase in the capital gains tax rate on residential properties.
The highest rate is currently 24% but it was 28% under the last Conservative government until as recently as April 2024. It seems a relatively soft target to increase the rate back to where it was for several years under the Conservatives and only affects those with multiple homes or property investments.
Will there be an attack on pensions savings?
Either by reducing the higher rate tax relief for those with higher incomes, or by reducing the tax-free lump sum which can be withdrawn when you reach the pension access age (currently 55 but increasing to 57).
A reduction of the annual allowance for savings in a cash ISA.
This is currently £20,000 per annum but there is a lot of speculation that this could fall to £10,000 pa or less. If the overall allowance is left at £20,000, the hope is that this would encourage investment in the UK stock market.
Another increase in employer’s NIC?
Whether any of these Autumn Budget 2025 predictions turn out to be correct or not is yet to bee seen. One thing is more certain though, based on the content of the Chancellors speech this morning, it seems likely that announcements in the forthcoming budget will affect us all.
