What to Expect from Rachel Reeves’ Autumn Budget Speech 2025

Rachel Reeves will deliver the Autumn Budget 2025 on Wednesday, 26 November 2025, a year after Labour’s first budget delivered a £40 billion tax increase. This time, the fiscal picture looks even tighter and further tax increases seem inevitable. At Labour’s party conference on 29 September 2025, the Chancellor warned of “harder choices” ahead, driven by “harsh global headwinds”, i.e. global pressures, including conflicts in Europe and the Middle East, US trade tariffs, and elevated borrowing costs.

The Autumn Budget sets the tone for the year ahead, and as accountants, you’ll need to interpret, advise, and respond fast. Manifesto pledges rule out increases to income tax rates, employee National Insurance, and VAT – taxes that together represent 75% of total receipts. This forces exploration of inheritance tax reforms, capital gains increases, wealth taxes on property, and National Insurance on rental income.

With Reeves in the driver’s seat, this speech could impact estate planning, property transactions, pension strategies, and business structures. Let’s look at what’s likely to come, and how you can position your practice to lead on reaction and advice.

Why the Autumn Budget Matters for Accountants

The Budget 2025 speech sets the tax and spending framework for the coming years. It’s the foundation for your client planning, business decisions, and practice operations well into 2027. It also represents the most constrained fiscal environment since Labour took office in July 2024, with Chancellor Reeves refusing to repeat her November 2024 promise to the CBI that she wouldn’t return with “more borrowing or more taxes.”

The budget as a policy direction tool

The Autumn Budget is where the government signals its priorities. The OBR’s economic and fiscal outlook (published alongside the Budget) will provide the authoritative assessment determining whether tax rises approach last year’s £40 billion or represent more modest adjustments. The OBR is expected to downgrade medium-term productivity assumptions.

Client expectations and advisory needs

For accountants, the Budget 2025 speech sets the direction for how to guide clients and adjust tax planning for the year ahead. Your clients will look to you for immediate interpretation and expect insightful guidance. The Budget creates multiple planning windows and anti-forestalling risks. Business owners, landlords, higher net-worth individuals, and SMEs are likely to ask: “What does this mean for me?” You’ll need to translate broad policy into tailored advice, whether that’s estate planning reviews before potential gifting rule changes, or pension contribution strategies before restrictions apply.

Key Areas Likely to Feature in Autumn Budget 2025

There’s a lot of speculation and predictions in the media right now. While nothing is confirmed, there are some areas that are likely to face changes.

Business and corporation tax

Labour’s manifesto commitment caps the corporation tax rate at 25%, and the Corporate Tax Roadmap published in Autumn Budget 2024 guarantees 100% first-year allowances for qualifying plant and machinery. The £1 million Annual Investment Allowance will also continue. Given the pressure to raise revenue, the government could introduce a windfall tax on bank profits. An update on business rates reform is also expected, as well as confirmation on the lower tax rates for retail, hospitality, and leisure properties with rateable values under £500,000.

Income tax and national insurance

Analysts warn that the Chancellor may need to raise revenue without formally increasing rates. Income tax threshold freezes (already confirmed to April 2028) are still expected. VAT changes remain highly constrained by manifesto commitments. Speculation centres on increasing the £90,000 registration threshold to £100,000.

Support for SMEs and self-employed

As with last year, smaller businesses may be favoured with incentives, reliefs, or cashflow support. However, government promises to support growth will be tempered by the need to raise revenue. Making Tax Digital for Income Tax Self-Assessment is still the most significant compliance change, with mandatory implementation beginning 6 April 2026 for self-employed individuals and landlords with qualifying income over £50,000.

Investment, growth, and green policies

Reeves has already flagged productivity and investment as priorities. Expect incentives for clean energy, R&D, regional growth, or capital allowances. There’s also growing speculation around green levies or taxes on high-carbon assets.

Other Budget 2025 topics of speculation

• Inheritance Tax (IHT) reform – changes to taper relief, lifetime gifting rules, and possibly tighter allowances
• Property & wealth taxes – talk of replacing stamp duty and council tax, a mansion tax, or levies on ultra-high-value assets
• Capital Gains Tax harmonisation or tougher rates
• ISA changes – tinkering with cash limits or qualification rules
• Pension reforms – even with protections in place, moves to restrict or reshape reliefs can’t be ruled out (the tax-free lump sum could be reduced)
• National Insurance on landlords – rumors of extending or increasing NIC on property income.

What Accountants Should Be Watching For

Budget day may bring simultaneous tweaks to rules (e.g. tax reporting, thresholds, reliefs). Be ready to filter announcements rapidly and map them to client types. Keep an eye on transitional rules and effective dates – sometimes the hardest part is timing. Sectors under pressure (property, agriculture, high-net-worth, financial services) may be singled out for targeted changes. If you advise in niche sectors, watch leaks, policy drafts, or committee reports pre-Budget.

Anticipating client questions

Start drafting responses to likely “What if?” queries:

• Will tax bills go up for employees?
• What will IHT changes mean for estates or gifting?
• Should they make large gifts now before potential seven-year rule extensions?
• Are clients better off selling before changes take effect?
• How will property taxes or capital gains affect portfolio decisions?
• Should they maximise pension contributions before restrictions?
• Should landlords consider company structures given potential NI charges?

You’ll want to push out client-facing summaries as soon as possible after the speech. To assist with this, ICPA members will receive a breakdown of the Autumn Budget 2025 speech (prepared by our team of experts) and its implications, which you can customise and send to your clients.

Preparing Your Practice for Autumn Budget 2025

The weeks leading up to 26 November represent a critical window for practice preparation. And in the weeks that follow, you can expect a flood of reaction – legislation, detailed papers, FAQs, and revisions. Significant changes are inevitable, but with preparation and support from ICPA, your post-Budget activity can cement your role as a trusted advisor. We’ll publish a full ICPA post-Budget summary and commentary, so you can lean on our analysis and quickly turn it into client advice.

Your clients will be looking to you for clarity, expertise, and actionable guidance. Make sure you’re ready to deliver.