What might happen in the 2025 Budget?

The Autumn Budget is coming soon, on Wednesday 26 November.

Whether you’re a saver, investor, homeowner, pension holder, or small business owner, the upcoming Autumn Budget on Wednesday, 26 November, is of significant importance to you. This is a preview, not a prediction sheet, and none of it is personal advice.

First things first: don’t panic

The Chancellor has already hinted that tax rises are coming and said we all need to “do our bit”. That has kicked off many rumours.

At this point, all the talk about potential changes is just that: talk. It’s important to remember that these are just speculations and not confirmed decisions.

In the past, people have rushed to act before a Budget, for example, taking out big chunks of pension money, only to find the changes they feared never happened. That can damage long-term plans.

So the key message is: Don’t make big money moves based on headlines.

Wait for real rules, then plan calmly.

What is the Budget?

Think of the Budget as the government’s money plan for the year:

• How much tax will it take in

• How much will it spend

• What will it borrow

This time, the Chancellor faces tough choices. The economy is weak, costs are high, and there are significant bills to pay for things like the NHS and defence. This could lead to new ways of raising taxes, which may affect your investments, property, or pensions.

The big areas to watch

Here are the main topics we’re watching for clients at PWS.

1. Income tax and National Insurance

Labour said they would not put up the main rates of:

• Income Tax

• National Insurance

• VAT

But they can still raise money by:

• keeping tax bands frozen, so more of your pay falls into higher tax bands over time

• changing rules for certain groups, like landlords or company partners

There have also been ideas floating around about:

• small rises in income tax and

• cuts to National Insurance to “balance” things for workers

Nothing is confirmed yet.

2. Pensions, tax-free cash and salary sacrifice

Two big talking points:

a) Tax-free cash from pensions

• Right now, most people can take 25% of their pension pot as tax-free cash (up to a set limit).

• There have been rumours this might be cut back, but more recent reports say the Treasury may be too worried about panic withdrawals to touch it for now.

Either way, cashing in parts of your pension early, just in case, can hurt your future income. Please don’t do that without a proper plan.

b) “Salary sacrifice” into pensions

Many people give up part of their salary in return for extra pension contributions. This often saves tax and National Insurance for both staff and employers.

Ideas being talked about include:

• Putting a cap on how much can go into a pension, this way, each year, before NI is charged

• In a harsher version, removing the NI saving on these payments altogether

If you use salary sacrifice, you will need to watch this closely

ISAs, your tax-free savings pot

At the moment, you can put up to £20,000 a year into ISAs, across:

• Cash ISAs

• Stocks & Shares ISAs

The government is reviewing ISAs. The big questions are:

• Should there be a lower limit for cash ISAs?

• Should more of the £20,000 allowance be nudged towards investing in shares, not just cash?

The aim from the government’s side is simple:

• They want more money going into investments that can help the economy grow, not sitting in savings accounts.

• Again, we need to see the details before we can judge what it means for you.

Property and landlords

Homeowners and landlords are firmly in the spotlight. Ideas being talked about include:

• New taxes on high-value homes or extra council-tax-style levies

• A change or cut to stamp duty, or letting people spread the bill over several years

• Charging National Insurance on rental income

• Stricter rules on Capital Gains Tax (CGT) for second homes or investment properties

If you’re a landlord, or you expect to sell a property in the next few years, the Budget could matter a lot – but again, we need facts, not rumours, before changing plans.

Investments, CGT and dividends

A few more areas that might be touched:

• Dividend tax: the tax you pay on income from shares held outside ISAs and pensions

• Capital Gains Tax: tax on profits when you sell investments or certain assets

• Wealth and inheritance taxes: including possible tweaks to the rules on gifts and the long-standing “7-year rule”

Most ideas being floated would mainly affect people with larger portfolios or estates. However, small changes can still add up over time.

What should you do now?

Three simple steps:

1. Stay calm

2. Headlines are meant to grab your attention, not build you a life plan.

3. Stick to your existing plan (for now)

4. If you have a long-term plan that aligns with your goals, it is usually better to wait for the real rules rather than rush to react.

5. Ask questions, don’t guess

6. If something you read worries you, pensions, ISAs, property, or business, please ask. A quick conversation can stop an expensive mistake.

How PWS will help

At PWS Financial Consulting, we will:

• Watch the Budget on 26 November

• Break down what actually changes,

• Explain what, if anything, you might want to change in your own plan

Budget day is about big numbers in Westminster. Our job is to turn that into clear, calm advice for our clients. If you need advice, we’re here to help. Schedule a free, no-obligation chat here. A guide on selecting a financial advisor is also available here.