What could the Autumn Budget 2025 mean for you?
Wondering how the Autumn Budget 2025 could impact your finances? With potential tax changes, spending plans, and economic forecasts, we explore the possibilities and prepare for what’s ahead, aiming to help you stay informed without acting on speculation.
As we approach the end of the year, all eyes turn to the UK government's Autumn Budget—one of the most important financial announcements of the year. Whether you're thinking about your tax position, planning for retirement, or simply keeping an eye on the cost of living, the Budget can shape your financial future in meaningful ways.
At Schroders Personal Wealth, we’re here to help you understand what’s changing, what’s staying the same, and what it could mean for your plans.
In this brief article we aim to explain what the Autumn Budget is and cover off some of the speculation we are hearing through different media outlets. Please note that this information is not personal advice, is not yet confirmed and that we do not base our advice on speculation.
What is the Autumn Budget?
The Autumn Budget (often just called “the Budget”) is a statement from the Chancellor of the Exchequer. It outlines how the government plans to manage the country’s money, covering everything from tax changes to public spending and economic forecasts.
When will it be announced?
The Autumm Budget is due to take place on Wednesday the 26th of November at around 12:30pm.
What’s included in the Budget?
The Autumn Budget covers a wide range of topics, key components include:
- Economic forecasts – Growth, inflation, employment, and public finances from the Office for Budget Responsibility.
- Tax changes – Updates to Income Tax, National Insurance, Corporation Tax, VAT, and more, it should however be noted that Labour stated in their manifesto that they will look to avoid raising personal Income Tax, National Insurance or VAT.
- Public spending – Funding for healthcare, education, defence, infrastructure, and social care.
- Borrowing and debt – Plans to manage national debt and meet fiscal targets.
- Cost of living support – Measures to help households and businesses with rising costs.
- Business incentives – Reliefs and policies to support innovation and productivity.
- Welfare and pensions – Updates to Universal Credit, State Pension, and other benefits.
- Environmental policies – Investment in green energy and net-zero initiatives.
What might change this year?
The chancellor is set to outline strategies for balancing the state finances in the face of lingering economic uncertainty and financial pressures.
Following the Spring Statement in March, the government could choose to focus on:
- Economic stability – With growth forecasts lowered to 1% for 2025, new measures may be introduced to manage borrowing and stabilise public finances.
- Tax reform – Potential changes to capital gains tax, inheritance tax, and pension-related allowances.
- Welfare spending – Further adjustments may follow the £4.8 billion annual savings announced in March’s Spring Statement.
- Defence and infrastructure – A commitment to raise defence spending to 2.5% of GDP from April 2027 may affect other departmental budgets.
Trade and industry – Support for UK sectors affected by global developments, such as US tariffs on car imports.
The crucial thing to remember, is that for the moment this is all pure speculation. Past experience shows that acting on rumours can have a significant impact to long term financial plans, therefore we recommend against making snap decisions based on what could happen.
In simple terms…
The Autumn Budget is the UK’s financial roadmap. It explains how much money the government expects to collect and spend, and what that means for individuals, businesses, and the wider economy.
We’ll continue to monitor developments and share updates once the Budget is announced. If you’d like to understand how any changes might affect your financial plans, we’re here to help.
Important information
This article is for information purposes only. It is not intended as investment advice.
Fees and charges may apply at SPW.
Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors might not get back their initial investment.
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