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Investing
Associate Director
With Chancellor Rachel Reeves set to deliver the Autumn Budget on Wednesday 26 November, anticipation is building across Westminster and beyond. The government is reportedly facing a £30 billion fiscal shortfall, driven by high borrowing costs, rising welfare expenditure, and sluggish economic growth. As pressure mounts, the Budget is expected to include a range of tax adjustments aimed at plugging the gap – some subtle, others more direct.
The UK’s three largest taxes – income tax, national insurance contributions, and value added tax (VAT) – offer the most straightforward route to raising revenue. Even small changes to these can generate billions, thanks to their broad base. However, Labour’s manifesto pledge not to raise taxes for “working people” remains in place, despite growing fiscal pressures.
Here’s a look at the most likely candidates for change:
A rise in the basic rate by 1p or 2p could deliver significant returns. More likely, though, is a freeze on tax thresholds until 2030, a form of stealth taxation that gradually pulls more earners into higher bands as wages rise with inflation.
There’s speculation that landlords may face National Insurance charges on rental income, potentially adding billions to the Treasury’s coffers.
Salary sacrifice schemes – often used to reduce National Insurance – may be reformed, possibly by making employer contributions subject to NI. The popular 25% tax-free pension lump sum could also be reduced, although further pension changes may risk undermining retirement savings.
A long-overdue revaluation of council tax bands could raise revenue without altering rates. There’s even talk of replacing council tax with a more progressive property tax, though this remains an outside possibility.
The VAT registration threshold may drop from £90,000 to £30,000, pulling more small businesses into the system. A rise in the main VAT rate is also possible, though it would be inflationary and hit lower earners hardest.
CGT could be aligned with income tax rates, especially for higher earners. This would raise revenue without breaching headline tax promises, though recent increases may delay further reform.
Expect potential changes to IHT thresholds, business asset reliefs, and pension treatment. Business owners may face tighter rules around succession planning and estate structuring.
If you’re a company director, entrepreneur, or family business owner, now is the time to review your tax position. The Autumn Budget could reshape how you protect and pass on your wealth, with implications for succession planning, pension strategy, and estate structuring.
We’ll be unpacking the Budget announcements and exploring practical steps to mitigate liabilities and plan with confidence at our post-Budget breakfast event on Thursday 27 November, hosted in partnership with East of England Energy Group at Great Yarmouth Town Hall. Open to members and non-members.
Register your place on the EEEGR website.
This blog post is intended for information only and does not represent personal financial advice. But if you would like to speak to one of our Chartered Financial Advisers, please get in touch. Past performance is not a guide to future performance. The value of an investment can fall as well as rise and is not guaranteed – you may get back less than you paid in.