The Autumn Budget is due to take place on 26 November 2025 and it already feels like we have been talking about it forever.  There appears to be a new idea floated in the press almost every day and the speculation of what will change is the topic on everyone’s lips.

Recent reports indicate that UK government long-term borrowing costs have reached their highest levels since 1998 and Rachel Reeves has acknowledged that the UK economy “isn’t working well enough for working people,” yet maintains that “it isn’t broken.”

With continued increases in household bills, questions persist regarding how the UK Government will address the widening fiscal gap in the absence of further taxation this Autumn. While commitments have been made not to increase National Insurance, income tax rates, VAT, or the headline rate of corporation tax, these sources collectively constitute almost 75% of total tax receipts.

Key outcomes from the previous budget in 2024 included higher employment costs due to increased employer NICs and impending changes to business relief for inheritance tax purposes, both of which presented challenges for businesses. Attention now turns to potential implications of the 2025 budget for the business sector.

Current expectation is of limited direct impact on businesses at large; no universal changes to corporation tax are anticipated and further rises in employer NICs are not expected. Targeted increases may occur within specific sectors, such as banking and gambling.

The Government has indicated that additional details regarding business rates reform will be forthcoming, primarily focused on eliminating barriers to investment.

Significant debate centres around possible ramifications for individuals and entrepreneurs. Growing speculation suggests potential increases to income tax, including the prospect of across-the-board rate hikes offset by reductions in NICs to provide worker protection, as well as a possible increase in the additional income tax rate (currently 45%).

Discussions also include proposals to extend NICs to property income—affecting landlords—and to raise NICs contributions for the self-employed.

Workplace pension reforms are under consideration, with reviews underway concerning salary sacrifice arrangements and auto-enrolment contribution requirements.

Regarding capital gains tax, incremental increases are anticipated, perhaps with measures introduced to protect longer-term holdings.

While substantial changes to inheritance tax were announced previously, further amendments may be forthcoming, particularly relating to rules on gifting.

There is growing momentum behind suggestions for the introduction of a wealth tax. The appointment of economic advisers who advocate for wealth-based taxation has increased its likelihood, though administrative obstacles remain. Real estate, in particular, appears to be a significant focus for any prospective tax.

Forvis Mazars will be running a breakfast seminar on the 27 November to discuss what the budget means for businesses in Manchester.  If you are interested in attending please get in touch via the contact details on this page.