Chancellor Rachel Reeves delivered the 2025 Autumn Budget yesterday, unveiling a range of new financial measures.
Key Points at a Glance:
The 2025 Autumn Budget sets out the government’s financial plans ahead of the next general election. With a strong focus on funding public services and supporting families, the Budget also includes several tax and savings changes that may affect individuals and businesses across the UK.
What You Need to Know
Changes to Personal Taxes
- The amount of income you can earn before paying tax (the personal tax-free allowance) will stay frozen until 2030–31. This means more people could gradually move into higher tax bands as their income rises.
- Taxes on income from dividends, property, and savings are increasing by 2 percentage points – so if you earn income in these areas, you may pay more tax going forward.
- From 2027, the annual tax-free savings limit for cash ISAs will drop from £20,000 to £12,000 for those under 65.
Pension Contributions
- The government is reducing some of the tax advantages around salary sacrifice pension schemes. This may impact higher earners who use these schemes to boost their retirement savings.
Support for Families
- The long-standing cap on child benefit for families with more than two children is being removed, meaning more support for larger families.
Government Finances
- These measures are expected to raise around £26 billion. The aim is to strengthen public finances while creating room for more investment in services such as healthcare and education.
For a detailed analysis, please read our full 2024 Autumn Budget report here.
| At Blue Spire, we’re here to help you understand what this Autumn Budget means for your personal or business finances. If you’d like to discuss how these changes might affect you, your tax position, or your savings plans, please get in touch, we’re always happy to help. |
